RGA's Colin DeForge and Danielle Storts provide key tips for underwriters to recognize the red flags that signal fraud. As the first line of defense, underwriters serve a crucial role in the identification and prevention of fraud. This article offers important insights, as well as an industry-wide call to action to tear down silos and improve communication to prevent fraud.
There is no single tool capable of defeating insurance fraud. In a wide-ranging paper and guide, RGA shares insights into fraud detection and prevention trends, techniques, and technologies at the RGA Fraud Conference. Insurers must be proactive and prepared to adapt nimbly, to keep pace with fraudsters. Find simple steps all insurers can take here.
Fraud has already made plenty of headlines this holiday season.
To better understand the challenges fraud presents, RGA has reached out to life insurers: We surveyed insurance companies, conducted informational interviews, held discussions at the 2016 RGA Annual Fraud Conference, and conducted our own internal research of claims experience.
Some states' Department of Insurance websites were hacked in recent years and agent information was altered for agents who had not actively written new business for an extended period of time. Identity theft continues to be a growing problem in many industries, but the life insurance underwriter is continually challenged to uncover this type of scenario.
Once in a great while you might come across a sales practice that makes you wonder; something about it doesn’t feel right.
Hank’s presentation on antiselection at the 2015 RGA Re Fraud Forum.
Companies have a variety of approaches for handling life insurance applications with an Irrevocable Life Insurance Trust (ILIT) listed as owner and/or beneficiary. Some companies don’t ask for anything other than the trust’s tax identification number; some ask for a trust certification; others just ask for limited pages from the trust; and still others ask for a copy of the entire trust and utilize a committee review approach, often involving associates from advanced marketing/legal, agency, actuarial and underwriting departments.
We traveled a great deal this past year, visiting clients, potential clients and attending industry meetings. Along the way, the topic of fraud in the Life insurance industry came up quite a bit.
The Financial Underwriting and Fraud Prevention Survey Subcommittee of the Society’s Committee on Life Insurance Mortality & Underwriting Surveys has completed its report on the results of a survey designed to examine the various requirements, guidelines and procedures life insurance companies establish to underwrite the applicant’s financial risks and efforts to mitigate financial underwriting and other fraud risk.