How to Minimize Fraud in Disaster Claims

Floridians whose properties were destroyed or damaged by Hurricane Ian are expected to file between $53 billion and $74 billion in insurance claims.

The federal government will disburse billions more in disaster assistance through tax relief, subsidies and direct grants. While the vast majority of the claims are legitimate and will be settled, criminals always see opportunities in the misfortunes of others.

According to the FBI, insurance fraud may have accounted for as much as $6 billion in losses to insurance companies and government agencies after Hurricane Katrina in 2005.

Fraud now accounts for about $40 billion in losses per year to U.S. insurance companies, costing the average family $400 to $700 per year in increased premiums.

But losses to fraudulent claims can be minimized by insurance companies. Identify verification (IDV) solutions have come a long way since Hurricane Katrina. Today’s most robust solutions use artificial intelligence and machine learning technology to verify identities anywhere in the world in a few seconds.