Claim Avoidance

Claim avoidance is a strategy used by insurance companies to identify and prevent fraudulent or invalid claims before they are paid out. This involves thoroughly reviewing claims to detect inconsistencies, signs of fraud, or errors that suggest the claim shouldn't be approved. The goal is to reduce unnecessary payouts and protect the insurer's financial stability. By carefully examining claims early in the process, insurers can avoid paying out illegitimate or overstated claims, ensuring that resources are used appropriately and policyholders are treated fairly.