Failure to catch overinflated claims is costing the insurance industry tens of billions of dollars each year. Paying too much or too little on a claim isn’t beneficial to either the policyholder or the carrier. Too often, an erroneous settlement amount is discovered long after a claim has been closed, usually during mass audits conducted on closed files.

Acknowledging that property claims overpayment is draining investment capital is the first step to reducing severity. In our business serving a mutual insurance carrier, $300 million in leakages were averted over a 20-year span. That’s capital better served for compliance and to fatten investment pools.