How is insurance fraud investigated?

The number of reports of insurance fraud is rising rapidly. Recently, a record number of insurance fraud cases has even been established. However, there is a difference between the number of fraud investigations and the number of fraud cases established. After all, an insurer has to be able to prove that fraud has actually taken place. That is why they always initiate an investigation when there is a suspicion of insurance fraud. Here we explain how insurance fraud is investigated.

When does an insurer investigate insurance fraud?

Are you filing a claim? Then the insurer may investigate whether the claim is legitimate. Claims are often checked by an automatic system. There is a certain limit amount above which an automatic check can be performed. For example, in the case of car damage this is €1,000 and for a bicycle it is €500. There are also a number of signals that are picked up by default. For example, if you claim the same damage within a short period of time. Or if you have changed the coverage of your insurance policy and immediately afterwards you claim a loss. These are all reasons for an insurer to investigate.

In addition, when applying for insurance, an insurer always checks the identity of the applicant. Is there reason to assume that something is not quite right with the details entered? Then the insurer can start an investigation. Insurance fraud is also the failure to provide honest information when applying for insurance.