Are insurers so focused on claims acceptance league tables that they are allowing fraudulent claims to slip through the net? Specialist insurance industry law firm Horwich Farrelly has highlighted the importance of striking the right balance between quickly settling claims and investigating potentially fraudulent activity.
“Fraud still costs the insurance industry and its innocent customers a huge amount of money every year, and anything which distracts insurers from cracking down on that has the potential to embolden would-be fraudsters,” said Rick Preston, Head of Horwich Farrelly’s Intelligence Team, in reference to FCA figures showing which insurance companies settled the highest proportion of claims. “What good is it to have the best claims acceptance rate in the industry if no customers are willing to pay the inflated premiums the insurer is forced to charge just to cover its fraud losses?”
The company also highlighted that, amid new technologies and automated systems, the human element must remain in the ongoing fight against insurance fraud.