While many of us start each new year enthusiastically setting goals for our personal, professional and social lives, it’s not uncommon for the enthusiasm to wane just a few weeks in, let alone several months.
In that time, you may have consumed a few more cookies than expected, hit ‘snooze’ one too many times before that morning jog, or taken yourself on a few spring shopping sprees.
However, it’s never too late to refocus, particularly as it relates to one professional resolution none of us can afford to let slip: the awareness of fraud.
At RGA, we have a unique perspective across the insurance landscape, and that includes seeing the fraud that is all-too common in our industry. While fraud prevention may not have topped your list of resolutions this year, there are a few reasons it should make the cut — even more than a few months in.
1) It is good for your company’s financial health.
The Insurance Information Institute estimates fraud makes up about 10 percent of the property and casualty insurance industry’s incurred losses and loss adjustment expenses each year. While similar statistics are not available for the life insurance industry specifically, we do know U.S. life insurance paid $74 billion to beneficiaries in 2016. As both industries sell to the same people (the U.S. population), the percentage applicable to life insurance is sizeable, and the likelihood of percentage of fraud may be similar.
2) It will familiarize you with the tools and resources at your disposal.
Chances are there are already a few fraud tools available to you, either through your company or from within the industry. Even more developments are on the horizon — including tools that sync up with wearable devices, ones that use electronic health records, and even some that apply facial analytics.
3) The more you think about fraud, the easier it is to recognize.
For those who have been working with fraud for decades, spotting red flags is second nature. For the rest of us, it’s possible to develop those skills through regular exposure. This can be achieved through:
- Attending a training program related to fraud, such as a professional conference.
- Discussing fraud across departments. If you’re an underwriter, connect with someone in claims to learn what fraud looks like from their perspective.
- Learning how fraud affects other industries. Talk to friends or family in different professions about how fraud is handled.
- Exploring presentations and articles on behavioral economics. This can enable you to learn you a little more about “why” fraud is committed.
- Inviting a fraud expert to come speak to your department.
Growing your professional knowledge and adding to your company’s bottom line? This is one 2018 resolution that for many of us, should extend into 2019 and beyond.