4 Ways to Combat Insurance Fraud

It’s no secret that insurance fraud is becoming a major problem. Fraudulent claims are going up every year and that number surpassed $80 billion in 2016 according to the Coalition Against Insurance Fraud. The loss of that money not only impacts insurance companies, but individual businesses as well.

The only way to fix this problem is to combat it with new and useful resources that are available. While fraudulent claims will never be completely done away with, there are ways that providers can drastically reduce this number while also making it beneficial to the customer. Here are some ways to do it:

1. Telematics

By utilizing technology to monitor driving behavior through telematics, companies are able to increase productivity, reduce labor and fuel costs, improve customer service, and more. As more data is produced, the rate of fraud will also decrease, providing a win-win situation for client and provider.

2. Working together

As a provider, you want to make sure that you are working with your client and ensuring that they are implementing safe driving practices.

3. Safety training

Claims occur when an incident takes place. Fewer incidents means fewer times a claim can be made. Studies have shown that companies who incorporate routine safety training for their employees see a drastic reduction in work-related accidents.

4. Cameras

Whether its dash cameras or security cameras throughout a store or office, these options can be very useful and beneficial for both parties.

There is no denying the advantages that telematics, cameras, safety training, and other tools have to combat fraud. Educating clients on the advantages of these tools is the first step in improving customer relations, efficiency, and cutting down on the number of fraudulent claims made throughout the year.