Fraud in insurance industry are growing during pandemic

Insurance has been close to us to be a complement and a support in our lives and for our most precious assets. However, the insurance industry has overlooked some important aspects such as fraud prevention and the use of technologies that help with this, perceiving negative effects even in their customers…

While insurers have been able to respond and adapt to this new normality that is the pandemic and its challenges, fraudsters have also been prepared to attack and commit fraud, which is why they have shot up considerably in various branches.

The imminent appearance of the virus and all the consequences it caused in such a short period of time led to mandatory confinement, mobility restrictions and all of us spending more hours indoors, in order to prevent and stop the spread of Covid-19.

This series of changes in habits made possible a change in the way those who seek ways to commit fraud in the insurance industry operate.

Insurance fraud has not represented a high percentage of total claims, however its evolution has not stopped growing in recent times. Fraud and fraud attempts have increased from 0.85% of the total number of events reported in 2010 to 2.21% in 2020, which represents a threefold increase in a decade.

The economic crisis will create conditions that could lead to an increase in insurance fraud cases.

Why is it important to detect fraud?

Detecting fraud has a significant impact on the premiums paid by policyholders for their policies, since the indemnities that the insurance company pays each year based on the claims that occur are the basis for calculating the annual premium.

We know that preventing them is no easy task! But with the help of technology it is possible to reduce their impact and detect them in time with our fraud funnel. With LISA Claims, we support insurers in their fraud detection. Learn more about Claims clicking here.

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