Statistically, 70 percent of respondents in a recent survey said they would never commit claims fraud, but that leaves 30 percent who might. Almost all surveyed believe that insurance fraud perpetrators rarely get caught.

RA7, based upon the layered voice analysis (LVA) technology, is a powerful claims fraud detection solution. The technology, which was originally developed for the Israeli Security Ministry, has been deployed throughout the world in government and law enforcement agencies, and corporate industry, for 15 years. It detects emotions, intent behind each word spoken, and whether truth is being presented, over the phone, in person, or by recording. The insurance industry in Europe, Asia, South America and other regions of the world has used the technology to successfully fight fraud for over 9 years. The RA7 claim fraud solution has now made its way to the U.S. market and is being received very well and is the way of the future in the US insurance market.

Perceived issues with the RA7 solution are just that, perceived. One of the concerns of the industry in the U.S. is how it will be received and perceived by customers. In other regions of the world this was, also, an original concern, but through customer surveys and conversations they quickly realized that the public liked the concept of using such a tool. Once implemented companies, are not only avoiding paying fraudulent claims, they are experiencing great customer satisfaction. The US market will soon find the same to be true here and embrace the technology. Honest customers will enjoy having their claim paid out much faster and all customers will enjoy their premiums, not being increased, or even being decreased.

Claims fraud is currently figured into the cost of insurance products, thus passed to the customer. Rooting out the fraud will enable companies to provide more comprehensive products for less, thus satisfying existing customers and attracting new ones. The only ones that will not appreciate your company employing RA7 will be your competition. Some people who get caught being dishonest will go somewhere else, but many will not. They will simply not attempt to cheat the company out of money in the future. The really hard core fraud rings run by organized groups will run to the next company to attempt the fraud. Once all the companies have employed RA7, there will be nowhere to run!

Another perception is that the product has not been challenged in court in the US, as it is fairly new to the market. However, asking someone, over the phone, to explain things honestly about their claim, is not against the law. The claimant is asked the same questions on a claims report and if they don't answer them, then the claim won't be paid. If they do answer them, but dishonestly, it's a crime. It's not against the law for the company to ask the necessary questions to process a claim. However, insurance companies are used to being sued for a variety of reasons, so they are obviously concerned about one more reason. One method to ensure that this doesn't happen is simple. The introduction during the initial phase of the call should state the call is being monitored for quality assurance and accuracy purposes. If someone gets caught attempting claims fraud, it's unlikely they will sue the company. They will, drop the claim, adjust the claim, or go to jail for insurance fraud.

One more perceived obstacle is that RA7 will catch too many people attempting fraud and they don't have existing resources to even go after the small percentage they currently detect. They say it's not worth going after a small $1500 stolen TV fraud case, because it will cost more to investigate and pursue than to pay the claim. The problem is the existing model employed by companies. There is currently a reactive model rather than a proactive model. If a company can detect and resolve that $1,500 case up front using RA7, in real time, it will be a small cost, as compared to the cost of an SIU investigation. There are literally millions of small claims that are paid out, but should not have, all due to the cost of investigating in the reactive model. The multi-millions saved by not paying out fraudulent claims will not only dramatically improve a company's bottom line, it will enable them to hire more human resources to address the increase in fraud detected. Detecting and quickly resolving more fraud is a good thing!

The only thing not debated is the accuracy and power of the technology behind RA7, which is proven and documented. The core technology, LVA, is being used all over the world, including the US with great success and accuracy. We have hundreds of satisfied customers, who provide excellent references to that effect.

Once companies realize that these perceived issues are easily addressed, RA7 will be embraced by most, if not all, of the US insurance market. RA7 is the future of claims fraud detection and resolution.

For more information about Veremetrix Security Solutions LLC, visit www.veremetrix.com or call 855-585-3638.

Special Reports /

The Future of Claims Fraud Detection

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