Private investigator: a solution against insurance fraud

In recent years, hiring a private investigator to uncover insurance fraud has become authorized in many countries. The results are promising.

The job of a private investigator specializing in insurance fraud

private investigatorA private detective’s job does not exactly go smoothly. Hiding, tracking, collecting evidence and building a case are the foundations of this profession. In several countries, these James Bonds are recruited to track down potential insurance-related fraudsters that standard control procedures are unable to flush out.

The law is strict when it comes to the privacy of individuals; the slightest abuse is severely sanctioned. Spying on an insured can only be carried out in public places. Taking photos or videos of the insured may possibly be while he is in his garden or balcony, provided he is visible from a freely- accessible place.

It is strictly forbidden to gather evidence about a person suspected of insurance fraud when he is inside his home. The use of an informer can only be done after authorization from a judge.

The private investigator serving the insurer and the insured

In many cases, insurers resort to private detectives. Attempted frauds and searches for life contract beneficiaries represent the most common situations:

  • Attempted frauds

Unmasking fraudsters is beneficial for both the insurer and the insured. Closing the door to fraud not only alleviates the claims and expenses incurred by insurance companies but it also leads to a reduction in premiums paid by policyholders.

The federation of European insurance companies "Insurance Europe" has estimated the cost of insurance fraud at 10% of the total amount of claims. The federation's latest report estimates that fraudulent claims reached 13 billion EUR (14.7 billion USD) in 2017.

This rate is higher in Africa and in some Asian and South American countries.

  • Search for beneficiaries of a life insurance policy

After the death of a life assured, the beneficiary designated in the contract may possibly not show up and claim from the insurer the amount due. The insurer who is faced with an unclaimed life insurance contract (i.e. without an identified beneficiary) must initiate a search procedure to find the beneficiary. In this case, the use of a private detective is a common practice.

Your rating: None
Advertising Program          Terms of Service          Copyright          Useful links          Social networks          Credits