Why social media helps when defending against insurance claims

This article looks at how insurers are turning to social media to help combat fraudulent claims.

Social media is quickly becoming an important tool in the fight against insurance fraud and it is also helping save insurers from paying out on exaggerated or bogus claims. According to CBS News, an increasing number of insurers are relying on evidence taken from social media when investigating claims. Social media can help insurers defend against claims in a wide variety of situations, including in auto accident claims, personal injury claims, and property claims. In fact, social media could be key to helping both insurers avoid paying out on fraudulent claims and ensuring that premiums are kept low for consumers.

Too tempting not to post?

It seems as though many claimants have a hard time staying quiet online. For example, in one recent case an individual had insured his one-million Bugatti sports car for two million dollars. When he had an "accident" and tried to collect on his policy, his insurer did a little online investigating and found a video showing the car being deliberately driven into a lake.

In another case, an Ohio man claimed his injury made it impossible for him to work. Photos that he posted to his Facebook profile, however, raised the suspicion of his insurer and led them to install hidden cameras at his gym. The claimant who had been too injured to work was soon filmed bench-pressing 500 pounds.

Preventing fraudulent claims

As those cases show, social media has provided a wealth of information to insurers who want to avoid paying out on fraudulent claims. As Business Insurance points out, social media evidence not only helps insurers crack down on fraud, but it also tends to be much cheaper than traditional forms of investigation. An insurers may spend just a few hundred dollars conducting a social media investigation on a claim worth tens or even hundreds of thousands of dollars.

By helping insurers crack down on fraud, social media also helps ensure that insurance premiums are kept low for all consumers. Insurance fraud is estimated to cost about $80 billion each year and the cost of that fraud gets reflected in costlier insurance policies. Fortunately, courts have routinely upheld the rights of insurers to comb through claimants' publicly available social media posts, meaning that the role of social media in fighting against fraud is likely to continue to grow.

Insurance litigation

The cost of defending against claims can be high for insurers. Fortunately, a law firm that is experienced in handling insurance litigation cases and defending insurers can help keep costs low and assisting in resolving cases quickly. By contacting such a law firm today, insurers will have the counsel they need to defend against exaggerated and potentially fraudulent claims and keep their business operations running smoothly and profitably.