The insurance sector has seen a massive rise in opportunistic claims. Research from law firm Keoghs warns of an substantial upward trend in opportunistic fraud, calculating the proportion of opportunistic claims doubling in two years from 21% in 2014 to 41%.
Global Insurance Product Manager, Dan Gumpright said, “Insurance is just like that intentionally broken vending machine: you only get cash back if you make a claim. In a touchless claims environment, the limited human interaction is likely to have similar outcomes to those found in the CAH experiments.”
Online tools, apps and chatbots are making it easy for insurance customers to submit claims quickly. It is for this very reason, the customers no longer want to deal with a company representative and expect everything to happen at the touch of their fingertips. This has also paved the way for customers to make opportunistic claims, investigation of which add up to massive costs on the company’s account.
With more sophisticated and early fraud detection technology and process in place, this issue can be cured. Here is a whitepaper talking about how you can leverage technology to detect and prevent touchless claims and insurance fraud.