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One of the biggest threats that insurers all around the world face is the ever-increasing rate of fraud. As the slow economy is producing pricing pressures, cutting payout claims is turning out to be the best route to optimizing efficiency and cutting costs. From a strategic viewpoint, a carrier’s success also relies upon the way they tackle the Claim’s operation.
It is true that insurers believe their unique selling proposition is efficient processing of claims. Furthermore, they deem that one solid means of reducing their claim costs is suppressing claim leakages by effectively handling insurance fraud cases.
Keep reading to uncover the top 3 ways of effectively planning an infallible fraud management strategy:
1. Underwriting Prudence
Management of fraud takes place much earlier than a particular claim case is reported. During an underwriting process, you will suspect a number of indicators that would be telling you a completely different story. Once the claims are completed, the data collected can optimistically impact the underwriting and scoring process.
However, there is a dire need of adding up more information in the underwriting process so that decision making becomes easier and justified. Also, the more reliable information you collect, the more strongly and effectively you can fight against insurance frauds.
Companies must be well-aware of their customer profiles and backgrounds to pick any hints of fraudulent intentions. Moreover, verification of identities and scrutinizing every applicant must be made a mandatory practice.
2. Effective Claims Teams
Right exploitation of resources is a crucial component of the overall fraud handling strategy. An organization that wants to effectively fight against fraudulent attempts must impart relevant skills and capabilities in its employees. To begin with, it must take into service employees that have strong investigation skills and develop a dedicated SIU unit specifically for handling fraud cases.
The employees must be trained via a well-construed training program and decked with the latest and necessary resources to fulfill the intended goals. They must be given online trainings and awareness about the recent fraud cases and how they were effectively tackled. Furthermore, feedback must be encouraged from claimants to motivate claims people and boost their morale. Companies must strive to establish a solid relationship between underwriters and claims people so that everything is streamlined and followed seamlessly.
3. Utilizing Technology
One of the biggest drawbacks that traditional claims organizations are facing today is the use of manual processes and restricted tools to handle frauds. According to several studies, claims departments in majority of organizations are operating below average systems that incur high maintenance costs. We cannot underestimate the true potential technology and analytics in effectively handling fraud cases. Companies must develop a fail-safe fraud program that clearly defines fraud objectives and how they are aligned to the overall business objectives. Furthermore, social network analysis is also proving to be a valuable tool in detecting potential frauds.
If you are in search of a private investigations firm that can uncover the truth for you, then National SIU is where you must head to. It’s one of the top private investigations firm in Schaumburg, IL that can effectively analyze fraudulent claims.
Article Source: http://www.streetarticles.com/insurance/top-3-ways-of-handling-insurance-frauds
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