How do insurance companies protect themselves against fraud?

Insurance companies in Washington protect themselves against fraud through a variety of methods. Regulations from the Washington Insurance Commission ensure companies have the necessary resources to ward off fraudulent activity. These insurance regulations include background checks for agents who are hired and outlines for internal processes and controls. Insurance companies also use technology to monitor for potential fraudulent activities. This includes using fraud detection software, which can identify suspicious claims activities, as well as analyzing company data for any unusual patterns or irregularities. Companies also have access to large databases which provide information about previous fraudulent activities and help to identify potential instances of fraud. Insurance companies use both data and analytics to investigate any potential fraud cases. This includes verifying the identity of those making claims and looking into the legitimacy of the information they provide. Any suspicious activity can be flagged and investigated further. Insurance companies must also remain vigilantly prepared for any type of fraud that may occur. This means developing a good relationship with law enforcement and having the necessary resources to quickly detect and investigate any potential cases. Insurance companies must continually update their policies and resources to remain prepared for various forms of fraud.

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How do insurance companies protect themselves against fraud?

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