Strategies to Eradicate Insurance Frauds

The strategies to eradicate insurance frauds could be better understood by a careful study of the following points --

• Measurement of frauds

• Coping with frauds

• The future

The measurement of frauds can be classified further in the following way:

• Hard To Measure

• Factors Accountable

Why are the frauds unmeasured ?

Frauds are difficult to measure because of three major reasons:

a) Frauds are often undetected

b) Researches are pending

c) Evidences are often wasted

These reasons can be further explained in a better way -

Frauds are often undetected: The laws that are directed towards spotting frauds are not strong enough. In the absence of laws, no proper network can be developed for tracking down malpractices.

Researches are pending: Researchers who start enthusiastically often dry up in the middle due to the trudging time.

Evidences are often wasted: Time being an important factor, evidences lose their worth and are often lost for good.

Coping With Frauds:

There are a few good ways to cope with frauds which can be summarized as follows:

• Fraud Busting Units

• Consumer Awareness

• Training Employees

• Hunting Down Cheaters

• Increasing Fraud Bureaus

Fraud Busting Units:

The State governments across the US have focused on developing different fraud busting units after their recent expenses towards anti-fraud movements proved futile. These units are composed of former intelligence personnel and retired policemen.

Consumer Awareness:

Consumer awareness drives are becoming more and more popular amongst insurers as they distribute insurance guide leaflets across a large volume of consumers. This in turn helps the consumers to know the various financial aspects associated with their policy in their correct form and thus detect and avoid the insurance fraud rackets. They are also being offered a number of active fraud hot-lines where in they can register complaints or seek advice 24/7.

Training Employees:

Insurers are resorting to training their employees through their initial phases of employment so that they suffice the expectations of the consumers promptly. Employees are now endowed with a better training towards handling all sorts of billing discrepancies which enables them to track any form of fraudulent intentions.

Hunting Down Cheaters:

Insurers have resorted to a joint funding of the National Insurance Crime Bureau in the recent times. NICB conducts different researches and collects vital data related to alleged fraud incidents and refers to them while prosecuting. It also conducts a National Consumer Fraud Hot-line.

Increasing Fraud Bureaus:

About 37 fraud bureaus have been developed by the insurance regulators across 45 states in the US. More & more fraud bureaus are trying to curb the insurance frauds through their vast network of data exchange facilities and through incorporating new operational laws.

It is not easy to eradicate insurance frauds in a day, but if we put in our best efforts then we may try & curb them gradually. This has to be a consistent effort over generations to rule out the basic causes & make sure that the vital social issues like health, life or business are sheltered.