Shrinking Damages With Smart Data

Recently, an elderly couple – who were both plaintiffs, one for personal injuries and the other for loss of consortium – gave testimony about their active lifestyle (outdoors and in the bedroom) before a slip-and-fall accident. Some of their claims were hard to believe given the slow, measured pace with which they entered the room, but they are the only people who know the intimate details of their lives.

While it's possible this couple was truthful, insurance claims frequently suffer from exaggerated injuries and malingering. According to the Coalition Against Insurance Fraud, fraud constitutes 10 percent of property and casualty losses each year, and only 8 percent of people believe they will get caught if they commit insurance fraud.