Fraudulent insurance claims can impact how much consumers pay for the coverage they need. If you have dealt with fraudulent claims, you would know that they cost valuable time and resources.
As an insurance provider, you have the right to dispute suspicious claims. When you know some of the reasons why people file these types of claims, you may have a better idea of what warning signs to watch for.
Financial distress
If you have clients who encounter dire financial circumstances, they may face the temptation to file a fraudulent claim to enlarge their wallets. Pay attention to the types of claims people file and their claim history. This information could provide insight into the legitimacy of their claims.
Stealing addiction
Another reason people may file a fraudulent claim is because of an addiction to stealing. Some people may feel that swindling an insurance company is not as significant of a crime. However, according to the FBI, the costs of insurance fraud exceed $40 billion each year in the United States.
Entitlement and greed
While you may have clients with legitimate claims, they may feel entitled to more money given the severity of their injuries or the costs of their accidents. As such, you may notice inflated numbers or suspicious facts within the claims. Entitlement and greed can drive clients to use deception when filing a claim in hopes of receiving more money in return.
The discretion you use to determine how legitimate an insurance claim is can help you identify a fraudulent one.