Investigations into insurance fraud in the UK have reached an all-time high this year, which is why you need to make sure that your UK insurance agency is protected from the threat of insurance fraud. The people committing insurance fraud are getting bolder and more sophisticated, so it’s vital that you make your agency as secure as possible. Here are some ways you can do just that and keep your company safe from the threat of insurance fraud in the UK.
Working As an Insurance Fraud Investigator
Insurance fraud is on a rise, and with it come more jobs for insurance fraud investigators. Insurance fraud is often perpetrated by insurance sales agents who either exaggerate their claims or submit fake ones altogether. The victim here could be you, your agency, or even a policyholder who doesn’t deserve to pay higher premiums because of fraudulent claims. If you want to fight these evil actors, there are now plenty of opportunities to do so as an insurance fraud investigator! Great Britain had 767 reported cases of insurance fraud last year alone; this number is up 37% from 2015. There’s also been a 35% increase in costs due to bad actors over that same time period!
What To Expect From an Investigation
Insurance fraud is a big business. In 2012, The Association of British Insurers (ABI) recorded over £1 billion worth of fraudulent claims—that’s more than a third of all claims investigated. Insurance fraud costs British consumers dearly, and it takes money away from people who are truly insured to pay for those who are not. Even worse, insurance fraud has become something that everyone should worry about. Insurance investigation jobs tend to be filled by former military police officers, paramedics or firefighters; however, new guidelines being enacted by several major agencies indicate that investigations will soon be staffed with higher-educated investigators. Insurers don’t hire simple-minded cops anymore; they need people with advanced degrees to look for loopholes in policies and sophisticated methods for falsifying claims.
The Investigations Process
To perform insurance fraud investigations, you first need to verify your suspicions by using whatever means necessary. You can do a deep dive into your client’s records or simply ask them directly if they were aware of any insurance companies that have contacted them to make a claim on their policy and that is how you get information from both parties. As an agent and an investigator it is up to you to use good judgment to be able to discern what is true and what isn’t. Once you’ve determined there was indeed fraud committed then it becomes your job to record details about what happened, where did it happen, when did it happen and who was involved.
Investigating White Collar Crime vs. Red Tape
Let’s start by reviewing some common terms. There are two main types of insurance fraud—white-collar crime and red tape. Red tape occurs when people lie about injuries or make fraudulent claims for losses they already suffered (but didn’t report at first). For example, you could claim that your car was stolen after you wrecked it. This means you were dishonest on your insurance application and actually violated your contract with your insurer. Red tape isn’t always malicious—it can simply occur out of negligence or forgetfulness as well. White-collar crime is generally committed by professionals, such as attorneys, agents, nurses, brokers, and doctors who intend to defraud insurers by lying about something or exaggerating an injury for money. It can be both deliberate and premeditated.
Common Scams Perpetrated by Insurers
Work for an insurance agency? You might be shocked to learn about how often your fellow employees are committing fraud. A few of our favorite schemes have been listed below, along with tips on how to avoid them and protect your firm. Don’t fall victim to these common scams perpetrated by insurers! Remember, when it comes to protecting your business and other agencies from misdeeds, vigilance is key. The best thing you can do is constantly watch out for red flags and make sure you’re not missing anything suspicious when it comes to your colleagues or clients.
How to Stay One Step Ahead of Crooks
Insurance is an industry that’s increasingly under fire. As policy sales agents, insurance nurses, and insurance investigators, we’re always being told to stay one step ahead of fraudulent claims – even when it seems like we’re barely keeping up with those that aren’t! The fact is that fraudsters are getting smarter all the time, and it takes innovative new ways of thinking to stay on top of them. Today I'll be sharing with you some creative new ways of protecting your agency from fraud, as well as some novel approaches to detecting possible fraudsters before they do too much damage to your company.
Resources For Further Education in the Industry
Insurance fraud is a serious matter for any insurance agency. If you've recently become an insurance investigator, here are some resources that can help you with your career and continuing education on your industry. The Insurance Crime Bureau offers educational resources that help to train insurance agents and their employees on how to avoid becoming victims of fraudulent activity. Although these resources focus specifically on preventing car-insurance fraud, much of their advice is transferable to any other field.
Conclusion
Insurance fraud is one of those crimes that come with a variety of penalties. Insurance fraud investigations can range from keeping track of an insurance sales agent’s activities to digging deep into complex cases of insurance-policy schemes and fraudulent claims. Insurance fraud investigators work for insurance agencies, departments within larger companies, law enforcement agencies, or for themselves as private investigators. Insurance fraud investigators have developed skills to look beyond numbers on paper and decipher if someone is lying or truly has been victimized by a crime. The need for insurance-fraud investigators will be high in 2022 as less experienced or underqualified workers attempt to join the growing field of fraudsters.
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