Ch. 3 - Why Hiring PI's Directly Benefits Insurance Companies

INVESTIGATION WEEKLY

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- WHY HIRING PI'S DIRECTLY BENEFITS INSURANCE COMPANIES -

Insurance companies play a crucial role in protecting individuals and businesses against financial losses due to unforeseen events. To effectively assess claims and minimize fraud, insurance companies need to have access to reliable information. Hiring private investigators is an effective way for insurance companies to gather this information. However, insurance companies have the option to contract with private investigators directly or through private investigative brokerages. In this blog, we will argue in favor of why insurance companies should contract with private investigators directly instead of private investigative brokerages.

• Cost Savings:

Insurance companies can save significant amounts of money by contracting directly with private investigators. Private investigative brokerages often charge a premium for their services, which can be passed on to the insurance company through higher fees. By cutting out the middleman and contracting directly with private investigators, insurance companies can reduce their costs and increase their profits. Private investigative brokerages also seek out their own max profits, creating a potential issue with whom actually is doing the work. Insurance may pay X rates per hour but only receive Y-value work from whoever is contracted through the brokerage company. 

• Improved Communication:

Working directly with private investigators can also lead to improved communication between the insurance company and the investigator. This can be particularly important when sensitive information is being shared. By communicating directly with the investigator, insurance companies can ensure that their information is not being passed on to third parties, which can increase the risk of data breaches and other security issues.

• Better Quality of Service:

Working directly with private investigators can also lead to a better quality of service. Private investigators who work directly with insurance companies can build a relationship with them, leading to a better understanding of the company's needs and goals. This can result in a more efficient investigation process, ultimately leading to better results.

• Customization:

Insurance companies can also take advantage of the flexibility that comes with working directly with private investigators. By working directly with investigators, insurance companies can customize their investigation services to meet their specific needs and requirements. This can lead to a more efficient and effective investigation process,  ultimately leading to better results.

• Greater Control:

Finally, insurance companies that contract directly with private investigators have greater control over the investigation process. By working directly with investigators, insurance companies can set clear expectations and guidelines for the investigation process, which can help to ensure that the results are consistent and accurate. More middle parties can create more confusion with a lack of strong communication skills.

In conclusion, there are several compelling reasons why insurance companies should contract with private investigators directly instead of private investigative brokerages. Cost savings, improved communication, better quality of service, customization, and greater control are just a few of the benefits that insurance companies can enjoy by working directly with private investigators. By taking this approach, insurance companies can improve their investigation processes, reduce costs, and increase profits.