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Digital scams are steering some policyholders toward lawsuits instead of claims
The podcast highlights “tech-enabled claim instigation,” with cases including Louisiana Citizens cutting its litigation rate by 1% in three months, saving nearly $9 million.
Risk & Insurance reports on the rapid growth of digital activity that targets people before they even file an insurance claim, using search ads, “doppelganger” websites, and AI manipulation to steer confused policyholders toward litigation instead of contacting insurers. In an episode of its Predict and Prevent podcast, Risk & Insurance discusses how public adjusters and lead generators can buy search visibility so that, when a policyholder turns to a search engine after damage, the information they find may not be the insurer’s claims number or official process. Todd Kozikowski, CEO of 4WARN, describes this as “tech-enabled claim instigation,” coordinated digital tools aimed at influencing claimants at their most vulnerable moment.
The outlet says the issue emerged from an investigation into why litigated claims in Florida were outpacing some insurers’ market share, and it has expanded into an intelligence platform that monitors digital signals across actors and companies before a claim is filed. 4WARN’s approach is described as outside-in, watching the digital environment as threats develop rather than analyzing claims files after the fact. Risk & Insurance cites results including Louisiana Citizens, the state’s insurer of last resort, reducing its litigation rate by 1% in three months, which it estimates as nearly $9 million in savings.
The report also says PCH Mutual, an insurer providing coverage to senior living facilities, cut its litigation rate, but the provided text cuts off before offering specific figures for that case.