How exhaustive background verification can save you From Insurance Frauds?

“People are increasingly turning towards insurance frauds as a quick clear cut solution for their financial miseries.”

Every year, fraud claims costs 1.6 billion pounds for the insurance companies all over the world. Today many of the insurance companies are worried about frauds due to the absence of strong detection systems in the value chain. It is saddened to see that in a fast developing country like India while the economies are growing rapidly, so are the fraudulent cases in the insurance sector. According to a survey by Royal & Sun Alliance, about 5 million of people do not think a false claim made as a crime.

Frauds in insurance sector is affecting both the parties namely policyholders and insurers. In a broader sense, as a result of many people committing frauds, the insurers are losing to their competitors and also the poor honest policyholders are pressurized for paying extra premiums reluctantly.

“The need of the hour – Anti-fraud regulations.”

Though the leading insurance companies and organizations are well aware about the need to address the issue, absence of a comprehensive approach or tool continues to be a problem for them. If such fraud claims remains unhampered then the ultimate people to suffer our none other than policyholders through increased payments.

Today many organizations are gradually adopting background checks to put an end to these crucial issues. These checks are requested by employers to screen their new hires, verify the accuracy of candidate’s claims found on his/her resumes, insurers to check the authenticity of the insurance claims and also the genuinity of private cab drivers can also be predicted. The background verification companies undertake sophisticated approaches to handle such investigations.

Why Insurers should adopt Background Checks?

The fraud insurance claims have been increasing in an alarming rate since last one year.
This increasing number is also driving up the premiums costs for policyholders and also for the insurers.
More robust methodology is needed to detect red flags.
It is crucial to screen all the insurance claimers.

Fourth Force is one of the leading background verification companies that have their presence all over the country and it covers all the distinct sectors such as educational verification, cab driver verification, address verification, criminal record verification and insurance claim verification. Fourth Force can efficiently counteract insurance frauds while protecting the integrity of your company.

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