Local or foreign investigations
For claims of a suspicious nature, it may be necessary to have a loss adjustor or investigator to validate the claims proofs on site. While the primary consideration in hiring an investigator is driven by the sum insured, there are other factors to consider when deciding if a local or a foreign investigator should be hired.
An investigator based in the country where the insured event occurred is likely to better understand local regulations and requirements that facilitate document validation, to notice any irregularities, and to raise relevant questions. However, it is important to note that the insurance policy is governed by the law in the country where it is issued. The claims assessor should ensure that the hired investigator is familiar with legal requirements related to the authenticity of the documents if the claim is subsequently denied and litigated.
While familiarity with local regulations is important, different data privacy and handling laws and restrictions can still present challenges, especially when personal information cannot be sent offshore. Cultural and language differences, and country-specific authoritative processes can also play an important role in these investigations.
The best approach is to conduct a joint investigation by both local and foreign investigators. An investigator with a network of locations and offices in the relevant jurisdictions is another alternative. It is important to seek legal counsel and / or reinsurer advice before beginning this process.