Which of the following is an example of how some insurers are fighting back against insurance fraud?

Starting fraud busting units staffed with former detectives and police officers represents a proactive approach that insurers are taking to combat insurance fraud. By employing individuals with investigative backgrounds, these units can effectively identify suspicious claims and misleading practices. The expertise of former law enforcement professionals allows for more thorough investigations, helping insurers differentiate between legitimate claims and fraudulent activities.

This strategy emphasizes the importance of specialization and experience in addressing complex fraud cases. Unlike imposing fines, expanding laws, or enacting penalties, which may address the consequences of fraud after it has occurred, the creation of dedicated fraud busting units acts as a deterrent by enhancing the insurer's ability to detect and prevent fraudulent activities before they result in financial losses. This approach not only protects the insurer’s interests but also helps maintain the integrity of the insurance system as a whole.