Insurance fraud costs the Canadian economy millions of dollars every year; it’s a flourishing multi-billion dollar industry. Insurance fraud is more common in North America than in other parts of the world.
When most people hear about insurance fraud, they picture a number of bad consumers trying to hurt insurance providers. But insurance fraud is bigger than that, and it messes up the entire insurance industry leading to higher rates. Common types of insurance fraud affect car insurance and life insurance.
Insurance fraud can be anything from an average Joe overstating the value of his 1996 ford mustang to contractors over-billing or organized crime gangs crashing cars. There are two main categories of insurance fraud: hard and soft fraud. Hard insurance fraud involves cases such as someone crashing his/her car on purpose or burning down a building. In cases involving hard insurance fraud, there’s no legitimate claim – its cause is purely manufactured.
Soft insurance fraud is more widespread
than hard insurance fraud. It involves someone exaggerating the actual worth of
a legitimate claim, the earlier example of an average Joe overstating the value
of his 1996 ford mustang is a perfect example of soft insurance fraud.
Insurance fraud hurts both the general public (high premiums) and insurance
providers (losses accrued from the payment of fraudulent claims).
Both soft and hard insurance fraud cost insurance companies a lot of money. They end up paying inflated claims and some purely manufactured claims leading to massive losses. To minimize these losses, insurance companies need to hire insurance fraud investigators such as Investigation Hotline to look into some of these ‘claims’ and establish their legitimacy.
Investigation Hotline is a reputable company with many years of experience in the insurance investigation. We are dedicated to the task and we will work day and night to uncover bizarre twists in a case. If someone is inflating the value of their insured item, we’ll catch them and prove it. With us, you will never have to pay for a claim whose source has been manufactured. Here are some of the benefits of working with Investigation Hotline:
Insurance fraud investigation is an important part of an insurance carrier’s risk prediction model. Investigation Hotline can look into personal, professional, and commercial policies and help you avoid insurance fraud. Call us today for high-quality insurance investigation services in Canada.
You can also fill out our online form if you are interested in learning more. We are ready to keep you and your business safe and secure.