A survey conducted by Property Casualty Insurers Association of America and FICO suggests a staggering 45% of insurers reporting fraud amounts between 5-10%
of their claim costs. As fraud is a serious crime, some individual cases can be heartbreaking. A woman in Miami was arrested
for not providing information to her insurer about the payment she obtained from her previous provider for hurricane damage and claiming it again. Of course, in cases of natural disasters people can become desperate and turn to radical practices.
The average national home insurance premium is $1,083. In some areas where cases of natural disasters are more common, such as Florida, the rate is around $2,055
. If premiums are a stumbling stone for both customers and businesses, how can technology drive it down?