Fraud Cost Everyone – Why Should You Care
Diligence International Group
More than the global leader in fraud investigation. People first. Purposefully built. Passionate execution.
The following article was written by?Kevin C. Glasgow, FLMI, FLHC, CLU?, CFE & Paul Marquez, Vice President, Diligence International Group, LLC and was featured on the Coalition Against Insurance Fraud FraudBlog.
Fraud costs everyone, and especially the honest insured – the cost: $308.6 Billion in premiums that needn’t have been paid. Protecting applicants and claimants from high costs is the responsibility, and some would argue the legal duty, of every insurer. While it is often easier for a claim examiner or underwriter to say “yes” to an applicant, agent, or broker, ignoring the red flags of fraud or having process gaps is not in the consumer’s best interest.
Recent headlines of fraudsters who have made off with hundreds of millions in fraudulent payments, mostly on smaller-dollar life insurance policies, should be a wake-up call for all insurers. To properly safeguard against fraud, an insurer’s risk managers need to be tenacious and passionate about processing all business promptly and identifying fraudulent companies.