Insurance 101 – Chapter 16 Volume 63 – Quantifying Anti-Fraud Efforts

Quantifying Anti-Fraud Efforts

One problem with the fight against insurance fraud is that its success is hard to quantify. There is no way to say precisely how much a business has saved when a fraudulent claim is not paid since the business or insurer owed nothing in the first place. Did the business save $80 when it did not pay a fraudulent claim for broken glasses? An adjuster might estimate that by stopping the single $80 fraud, the business has saved $80,000 in claims not made in the future, but executives want evidence. The people who operate insurance companies are interested in making a profit. They want to know what the fraud investigation saved and if the amount saved exceeds the cost to save it.

The following video was adapted from my book, “Insurance Claims A Comprehensive Guide” Published by the National Underwriter Company and is available at the Zalma Insurance Claims Library

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The author and publisher disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use and application of any of the contents of this blog. The information provided is not a substitute for the advice of a competent insurance, legal, or other professional. The Information provided at this site should not be relied on as legal advice. Legal advice cannot be given without full consideration of all relevant information relating to an individual situation.

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