Thesis: Fraud has been an age old nuisance to insurance companies and countless individuals across the country; however, with the advancement of technology and increased human intervention, that problem can be a thing of the past.
Reason #1: New software has enabled insurance companies to monitor claims filed from various clients.
Evidence: Siebel Systems and Teradata, two large fraud software companies, have researched and developed programs to provide exclusive privacy and security in tracking all claims filed. Having a software system in place allows for nothing to be tampered with once a claim has been filed.
Reason #2: Without any supervision, over $1 billion dollars is lost due to fraudulent activity.
Evidence: 25% of the claims filed in the U.S contain some element of fraud. By incorporating solutions to combat that fraud like “new data solutions, innovative products, and improved risk management,” that burden of $1 billion dollars could be drastically reduced.
Reason #3: Technology improves on a daily basis, which essentially means the future is optimistic for the fight against fraud.
Evidence: As radical and preposterous as some solutions sound today, down the road into the future, they could be implemented into modern day culture. Specifically regarding medical insurance, one executive foresees microchips being implanted into patients which contain all of their medical history.
Reason #4: People as a whole need to increase awareness of insurance companies that they file claims with.
Evidence: 1 out of every 5 Americans experience insurance fraud. That statistic is rather eye-opening; however, it can be lowered with a cooperative effort between individuals and insurance companies. Many horror stories result from individuals entrusting the “perfect insurance company” to handle their claim, while they don’t realize that the company they filed with is actually a scam.
Reason #5: Anti-fraud technology cracks down on fraud at the beginning stages.
Evidence: Software stops fraud from growing and spreading into a malicious crime. Like a medical virus, preventing fraud in the beginning stages will save insurance companies and individuals large amounts of money as well as stress.
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"Reason #3: Technology improves on a daily basis, which essentially means the future is optimistic for the fight against fraud."
ReplyDeleteAndrew, you've got great reasoning, except...this reason could also be the opposing viewpoint. Because technology is improving, there will always be new ways to commit fraud. How would you counter that viewpoint?
--NH