Combating Fraud In the 21st Century

Although major technological innovations have improved the property/casualty insurance industry's ability to fight fraudulent activity, claims fraud continues to be a profitable criminal undertaking. According to the Insurance Information Institute, fraudulent or padded claims cost property/casualty insurers more than $30 billion per year. To be effective, fraud-fighting efforts must be supported at the senior executive level. Insurers should create sensible processes for dealing with suspicious claims and implement an effective anti-fraud training program for all employees. In an uncertain economic environment, insurers will need to step up their efforts to combat fraudulent activity. In the long run, the most effective anti-fraud solution will be to build an integrated system that applies the intelligence of claims fraud analytics earlier in the business process.