The number of fraudulent water damage claims has shot up during the pandemic. Loads of people have spent the last year stuck at home and strapped for cash. Unfortunately, the temptation to make fraudulent claims about damage from water has swelled.
So how can insurers fight back against the fraud epidemic?
Thankfully, you can use a few tools and techniques to ensure your company doesn’t get taken advantage of by fraudsters. Let’s check a few of them out.
Fighting Fraudulent Water Damage Claims With Modern Technology
Back in the old days, catching an insurance fraudster meant a lot of digging or even hiring private investigators. But the millions of pounds per year the insurance industry spends finding ways to fight fraud has paid off. These days, algorithms can do a lot of the heavy lifting.
For example, suppose a fraudster has made a few strange transactions with plumbing professionals who might be in on the scam. A decade or two ago, that kind of behaviour might easily have slipped under the radar. However, it would be complicated to verify independently.
But that’s not the case today.
Today’s insurers have access to tools that can alert them to suspicious transactions by claimants. That means a much better chance of not falling prey to the underhand tactics of unscrupulous fraudsters.
And you don’t have to spend entire days combing through transaction histories and social media pages. A win-win situation all around!
Claims of Fraud? There’s an App for That
It’s no surprise that there are already a few app-based solutions to these problems. And some of them are effective!
For example, an app that connects insurers and claimants directly with professional plumbers can be invaluable. The case for businesses is simple: it’s an easy way to get a trained professional to verify water damage claims. What’s more, it means not having to fork out money to get plumbers into a physical property.
And even though the pandemic is easing up, that’s still a great bonus for everyone’s health and safety.
For residents, the advantages are even more obvious. Having a professional to walk you through simple water damage solutions is a lot quicker and safer than most alternatives. What’s more, a quick check-up is a great preventative measure against future damage from water.
That means fewer opportunities for dishonest insurance claims in the future. Clients get their plumbing sorted cheaply, and insurers don’t have to reckon with untrustworthy claims.
Because it turns out, prevention is still better than cure.
We Have the Technology
Those are just a couple of ways insurers can protect themselves from fraudulent water damage claims. Unfortunately, as both insurers and fraudsters grow more sophisticated, there are bound to be more in future.
For now, though, this is the cutting edge. And it’s pretty effective! By utilising some modern solutions to fraud, your business can weather the pandemic fraud surge and come out stronger for it.
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