As with anything in life, certain individuals, regardless of their socioeconomic status, will only do what is inspected of them, not necessarily what is expected of them. A proactive approach toward claim investigations allows the file handler the opportunity to inspect evidence and capture valuable data prior to the claim spinning out of control.

The identification of red flags should be considered a fundamental of basic claim investigations. Proper identification of these red flags allows the file handler the opportunity to dispatch field representatives to the loss location to collect valuable data necessary for the proper handling of a claim file.

For instance, in today's economy, it's no surprise that spending as a society is down. The construction boom of two years ago has caused a great rift in the balance of the once-thriving labor market. In addition, increased fuel costs and the need for traveling greater distances have significantly affected income levels and discretionary spending. This socioeconomic challenge ultimately will affect claim counts, increasing loss ratios, and opening doors for committing insurance fraud. A proactive approach, however, allows a file handler to accurately understand not only the injury, but also certain social factors that may influence fraudulent behavior.