A fraud expert has urged insurers to “be prepared, be ready and be bold” in challenging fraudulent claims by carrying out focused investigations as soon as suspicions are aroused.
Graham Eklund QC told an insurance fraud seminar that insurers must develop better strategies to cope with the 16% of insurance claims thought to be fraudulent.
“if you are bold many of these claims will be knocked down. You must publicise your successes so that others in the industry know that fraudulent claims will not be tolerated,” Eklund told the James Chapman & Co. seminar.
He urged delegates to launch thorough investigations as soon as fraud was suspected.
“Get as much information as possible as quickly as possible to retain the advantage. The insured’s co-operation wanes with the passage of time and it is essential to deal directly, rather than with the insured’s lawyers. You can only do this if you act quickly.
“In the event of fraudulent fire damage claims, forensic evidence is often at the heart of the case and it is crucial to act quickly before the evidence is taken away.
Eklund said it was essential to keep in close contact with witnesses as the case developed. “It is essential to develop relationships and build confidence. Sometimes you will find they are disaffected employees and if you keep in touch with them they can frequently provide crucial evidence.
Discovering the motivation for the fraud and finding out more about the character of the insured was also very important in influencing judges, said Eklund.
