How SIU Works in the Insurance Industry?
Posted by [email protected] on Jun. 14, 2024 / Subscribe 0
How SIU Works in the Insurance Industry?
Ken Blaker of Shelter Insurance Companies spoke regarding SIU in the insurance industry. He brought a wealth of knowledge to the keynote speaking role. He went over the details of how SIU works in the insurance industry.
The presentation consisted of how in-person interviews are still just as important as ever and how future technology is being utilized in the industry, such as predictive modeling and a more data-centric approach to deter fraud in the insurance industry. Additionally, the tools of an SIU investigation were mentioned in the presentation.
The main takeaway from the SIU presentation is that fraud hurts everyone, as seen from these points presented by Ken. We also found out that billions are lost from fraud each year and the top industry cost is property and casualty. In total, fraud costs the average American almost $1,000 a year across all industries.
Insurance fraud hurts everyone:
- It increases costs and reduces profitability when fraudulent claims are paid.
- It increases insurance premiums.
- It increases taxes to fund government insurance programs.
- It decreases revenue in reduced or returned premiums.
- It affects customer service.
The presentation also covered how fraud indicators play a vital role in discovering fraud. While these do not necessarily mean fraud, they can lead to discovering if fraud could be occurring.
- Vague or inconsistent details
- Prior claim history
- Person is unusually knowledgeable about insurance and the claim process
- Insured contacted the agent about coverage shortly before the claim
- New policy
- Insured’s address is a PO Box/avoids using US Mail
Some tips for insurance agents mentioned. Agents are encouraged to:
- Write complete applications
- Review inconsistencies with the customer
- Verify statements on the application
- Inspect and take photographs of the risk
What to do?
- Require complete applications
- Ask questions!
- Request documentation
- Ask for photographs
Stories
The CPCU audience was captivated by the fraud stories where we learned of some situations where people have committed fraud in insurance. Then how the insurance investigation turned out. Ken did a great job with his informative SIU presentation to the CPCU Society. In the end don't commit insurance fraud is the main take away. It is not a good idea.
0 Comments