LexisNexis RiskWise has developed a new service to more effectively fight the growing problem of insurance fraud.
Using the LexisNexis(TM) Rate Evasion Evaluation service, insurance companies can now reportedly detect falsified data on applications to fight unknown exposure and subsequent fraudulent claims.
According to Seth Perlmutter, LexisNexis RiskWise vice president of Insurance Services, “Understanding your exposure to rate evasion can help combat the war on fraud, improve your loss ratio and add more money to your bottom line.” LexisNexis RiskWise can reportedly help insurance companies address rate evasion by detecting certain types of fraud or misrepresentation on applications, such as garage address, ownership and or registration, identity, property characteristics, vehicle use, and unreported “youthful driver” in household.
To help combat fraud, LexisNexis (www.lexisnexis.com) Rate Evasion Evaluation will:
– Verify information using multiple databases in either an FCRA or non- FCRA environment.
– Validate and verify that the information provided is real-including personal identity, address, phone number, vehicle registration, garage location, vehicle characteristics etc.
– Quickly identify application misrepresentations during the underwriting process or anytime during the life of a claim.
– Return a unique score that identifies the areas of risk while providing supporting information.
– Deliver high-volume results via batch processing or system-to-system processing.
In 2002, the Insurance Research Council reported in a joint study that only 25 percent of insurers thoroughly investigate cheating on insurance applications, and even fewer insurance companies investigate insiders such as employees and agents who commit premium fraud.
To cover the cost of insurance fraud, the National Insurance Crime Bureau estimates that all Americans pay $200 to $300 in increased insurance premiums each year.
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