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Insurance Firms Must Stay Vigilant Against Evolving Claims Fraud
SINGAPORE - As the insurance industry continues to grapple with claims fraud, experts warn that insurers must remain proactive and adaptable to stay ahead of increasingly sophisticated fraudsters.
According to a recent report by Reinsurance Group of America (RGA), up to 4% of global claims are fraudulent, with Asia being the region most affected. However, only about 2% of identified fraud cases result in prosecution, due to high litigation costs and uncertain outcomes.
Fraudulent claims can have a significant impact on an insurer’s reputation and bottom line, making it essential for companies to have robust measures in place to detect and prevent fraud.
Combating Claims Fraud
To combat claims fraud, Crawford & Company recommends the following five key stages:
1. Forensic Evidence
Utilize data analysis and forensic accounting to uncover suspicious patterns in claims.
2. Recognising Fraud
Train claims personnel to recognize red flags, such as a history of making multiple claims or inconsistencies in the claimant’s story.
3. Access to Information
Share internal data and industry intelligence to better assess risks and identify fraudulent activity.
4. United Front
Collaborate with industry associations, legal bodies, and government agencies to share knowledge and best practices.
5. Data Analytics
Leverage artificial intelligence, machine learning, and data analytics to detect and manage fraud promptly.
Expert Investigation Services
Crawford & Company’s Investigation Services team offers a range of services, including:
- On-site analysis
- Evidence collation
- Claims handling
- Expertise in death and disablement claims, suspicious claims, suspect medical claims, unexplained deaths, and document authentication
“We understand that every second counts when it comes to detecting and preventing fraud,” said Chan Hwee Seng, Director at Crawford & Company Singapore. “Our team of experts works around-the-clock to provide discreet, thorough investigations and comprehensive reports to our clients.”
About Crawford & Company
Crawford & Company is a leading provider of claims handling and insurance services. With over 75 years of experience, the company has solved some of the world’s most complex claims handling challenges, helping businesses keep their focus on people. Learn more at www.crawco.com.