Skip to Content
In an article published on 2/10 in The Daily Business Review, Segal McCambridge Senior Associate Mallorie D. Milord discusses the complicated landscape affecting Florida residential insurers in light of the ongoing crisis of exaggerated and fraudulent claims. Such fraud costs consumers nearly $309 billion annually, leading to individual household premium spikes of $400 to $700 annually.
“The crisis requires insurers to continuously develop proactive strategies to mitigate risk — while continuing to offer valuable coverage to homeowners,” writes Milord, adding that this includes leveraging technology, reinforcing claim review processes, and employing litigation tactics to quickly combat potentially fraudulent claims. “Foremost, residential insurance companies should further develop systems and multi-stage processes to alert about claims with inconsistencies and those with large monetary or complex requests to lessen unnecessary payouts. … As insurers incorporate more artificial intelligence (AI) tools, risk can be better identified early on and help automate claims processing to analyze data and patterns for potential fraudulent claims to investigate further.”
Milord advises the need for continuing education and consulting with attorneys regarding fraudulent claims updates.
“Continuing education, technology improvements, and data-driven systems can align and expedite initial reviews while flagging and vetting a policyholder’s public adjusters, experts, and claim analysis,” Milord writes. “This approach enables insurers to swiftly identify and flag claims where policyholders or contractors exploit the system.”
Read the story in full; click here(subscriber-based).
