EFG Companies is fully aware that operators likely are tracking every penny that flows through their businesses nowadays. As a result, this week the company bolstered its formal fraud detection program for dealers, creating significant roadblocks against fraud and theft while protecting dealer reinsurance positions.
EFG highlighted its multi-point program now includes:
— Real-time call and repair order monitoring and auditing
— In-depth training
— Proprietary claims system lockdown protocol
— Cutting-edge virtual claims inspections
EFG said these measures are all designed to save the dealership more than $100,000 annually in fraud and claims savings.
According to the Coalition Against Insurance Fraud, fraud accounts for up to 10% of claims costs for U.S. insurers, with 32% of insurers saying fraud was as high as 20% of claims costs. In the F&I industry, EFG acknowledged those costs directly affect dealership reinsurance positions, impacting the dealer’s bottom line, underwriting profit and investment income.
To protect client reinsurance positions from fraud and ensure quality customer service, the company said every inbound call to EFG’s claims operations is recorded. Furthermore a dedicated audit team reviews more than 300 claims and calls per month, checking for:
— Consistency with process
— Adherence to policy language/contract
— Validation of labor time and parts pricing
— Confirmation of mechanical failure
— Quality assurance of the transaction, including recorded call review
— Fraud detection
EFG went on to mention the company’s trained supervisors review audited calls and claims directly with the associates who handled each claim. The entire claims operations team participates in quarterly training sessions designed to keep them ahead of any industry trends.
With those processes in place, the company said that 72% of claims are handled by EFG in just one phone call. The company added that the cycle time on 75% of EFG claims is one day while 96% of claims are paid electronically within one hour of claim approval.
Additionally, EFG said it restricts the hours in which claims may be approved using a proprietary claims system lock down protocol. With this measure in place, the company said claims submitted after normal business hours will not be processed until the following business day, giving EFG greater control and oversight.
Furthermore, EFG mentioned that it has implemented a virtual claims inspection technology designed to significantly reduce claim cycle time and protect client reinsurance positions from claims fraud.
Based on a two-month internal benchmark dealer analysis of 89 claims, this technology saved EFG clients more than $10,000 in potential fraud and onsite claims cycle time.
With this in place, EFG said it increased its detection rate of claims that require a greater level of investigation by 3.5 times.
“Implementing this technology benefits our clients in three very specific ways,” said John Pappanastos, president and chief executive officer of EFG.
“First, it improves customer satisfaction and retention by creating greater efficiency in a given service appointment,” Pappanastos continued in a news release. “Second, it enables dealerships to service more vehicles, as they are spending less time waiting for approvals and payments. Lastly, and most importantly, our automatic adjudication software dramatically improves fraud detection to protect our clients’ reinsurance positions.”
The software-based technology fits directly into EFG’s existing claims process, enabling the company to process specific claims virtually, eliminating the need for costly, time-consuming claims inspectors.
Additionally, leveraging the virtual inspection database, the company noted its technology can detect fraudulent claims including duplicate claims and claims with false information.
In these instances, EFG said a physical inspection is requested to validate the claim, which can saves the dealer thousands of dollars.
“Our dedication to quality customer service is the reason we are able to better safeguard our clients’ reinsurance positions,” said Jay Hartmann, vice president of operations at EFG.
“We’ve always operated from the principle of keeping a promise to a customer at a time when they need it most,” Hartmann continued. “This results in EFG providing award-winning claims administration, getting customers back on the road and in their vehicles.”
To learn more about EFG, go to www.efgcompanies.com.