Yes, they do. Fraudulent claims cost the insurance industry billions every year, which they then recover by increasing their members’ premiums. As people are getting more and more creative concerning their falsified claims, just so, insurers need to find new avenues to investigate, ultimately ensuring the financial safety of their members.

But is social media investigation the best means to curb fraudulent claims?

In April 2016 it was found that there were 1.59 billion Facebook users logging on every month, 400 million on Instagram, and 320 million on Twitter. The amount of data collected via social media truly is priceless. Moreover, unless the user has adjusted their privacy settings, all their information and posts are considered public content and can be used against them.

There have been incidents where insurers were able to use social media to uncover false claims. For instance, a woman who submitted a claim for a lost wedding ring, while she posted photos of her wearing it. Another example is a man who claimed for accidental damage to his car; however, investigators found footage of him intentionally driving his car into a water puddle.

Investigators also look for connections between the different parties involved in the claim, a change in jobs or risk address, and posts where the clients sold a possession. Although, investing social media accounts can reveal a great deal about clients and their claims, investigators rarely have the resources to investigate each claim this thoroughly. This is where data analysis plays a beneficial role, as a company can process large amounts of data at once identifying fraudulent indicators more quickly. For example, they can analyse natural disaster damage claims via geospatial analysis, which can indicate the severity and quantity of claims that will be submitted from a certain region.

As technology develops and improves, so do insurers’ avenues to investigate claims and develop products more accurately.

The bottom line is – don’t submit fraudulent claims.

Speak to one of our expert insurance advisors about which cover options are best suited for your needs, what level of cover you have, and for assistance on how to submit claims. We put our clients first and will assist you every step of the way, ensuring you enjoy dependable insurance cover and that you never unintentionally submit a fraudulent claim. Visit www.indwe.co.za or call 0860 13 13 14 for expert advice that will put you first.

Information source: Milliman

Indwe is an Authorised Financial Services Provider.