Corporate Ways of Fighting Insurance Fraud in Europe

One of the main tasks for the insurance industry and other businesses is to find the appropriate ways to fight against fraud. The purpose of this article is to review the issues of combating insurance fraud, as well as trends in its prevention in Europe. The study was conducted based on a systematic analysis of the insurance industry, which is a complex economic system. The analysis is based on survey data conducted by FC Business Intelligence. This paper identifies the main causes that prevent companies from implementing an efficient corporate strategy of fighting against fraud. The most significant ones are the following: problems with internal control quality, undetected fraud within a company, and issues with data protection. Apart from that, this article identifies the main causes of insurance claims being fraudulent. The manuscript also provides the possible solutions of preventing fraud in the digital age. The European companies have excellent experience in the insurance industry. Nevertheless, even their expertise of dealing with fraud may sometimes not be sufficient. The manuscript gives recommendations for the timely prevention of fraud schemes.