06 Mar Case Study – Gadget Fraud
With the growing use of telecommunications, smartphones, tablets and now with the increased demand for technology to assist in our working and schooling lives, the volume and cost of gadgets are just two factors which have seen insurance costs rise within the lifestyle sector. Unsurprisingly, for some, this has resulted in a rise in fraudulent claims.
For some areas, such as mobile phone insurance, reporting loss or damage requires minimal information to successfully validate a claim, consequently identifying suspect claims becomes increasingly difficult. Our fraud team offers several solutions to tackle these growing areas of fraud and we have grown our department with the assistance of our Head of Conversation Management & Intelligence, Donna Emmett. Donna prides herself on getting the best results for our clients, completing a fast, thorough & cost effective way of investigating claims.
Handling suspect claims requires the sensitive approach of a blended expertise to ensure that the probability of fraud is established quickly and the appropriate strategy is applied. Our gadget fraud team offers you such techniques that are done in a warm, responsive and open-ended questioning approach. As part of the one of the most successful independent investigation specialists, with the most highly experienced counter fraud unit in the investigation industry, we handle the full range of suspicious claims including fraud rings.
To highlight our successes, our case study looks at a client who came to us with a concern that they were experiencing significant losses due to exaggerated and fraudulent claims. With the assistance of our team, we helped the client put in place the correct resources to manage suspected exaggerated/fraudulent claims adequately. We also assisted them in reviewing their fraud indicators. Any suspicious claims that triggered such indicators are passed to our team to review.
When reviewing 2 years of management data, we can conclude with the 728 cases within this period, where our client has now closed resulting in a reported NET saving of £230K. When we drill down on these numbers, it shows an overall average saving of £315 for each individual case we reviewed. Furthermore, we found that our overall rejection rate was 42%, providing a ROI of 350%. These figures highlight the need for insurers to be proactive in their approach to tackle fraud.
Our counter fraud team predicts that there will be a huge increase in fraudulent claims due to the financial strains which will be put on families due to the impact of Covid-19, resulting in some to commit fraud to try and make ends meet. We also predict that there will be some opportunists trying their luck resulting in further increases within fraudulent rings using the pandemic to their advantage.
Should you wish to prepare your claims teams for the influx of such cases, then please contact Donna Emmett, who will be happy to assist in tackling the growing issue of fraud, especially with regards to Gadget Insurance, where our success rate speaks volumes.