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Insurance Fraud Surges With Bad Economy
With the people losing their jobs, homes and businesses an article on www.insurancejournal.com reports that insurance fraud is on the rise. People are looking for ways to make easy money and some are resorting to defrauding their insurance company. Notice how this is illustrated in this report:
“The Association of British Insurers (ABI) currently estimates that fraudulent general insurance claims cost the industry £1.9 billion [$3.2 billion] a year, up 24 percent from previous estimates. But insurers are detecting more of the fraud committed. Last year, frauds worth £730 million [$1.226 billion] were detected and prevented, a 30 percent increase on 2007, the ABI said.
Now insurance fraud comes in may different ways. Insurers may may burn their homes, cars or businesses in hopes of collecting on the insurance. Others are insuring items they do not have or are greatly exaggerating their worth in hopes of making a killing on a phony theft claim on their homeowners insurance policy . But insurance companies are getting the wiser as they incorporate the latest technology into their fraud investigations. Notice what the article states:
“The insurance industry is getting much better at spotting fraud, and has invested in data mining and claims analytics in a bid to combat claims fraud, said Bobby Gracey, Vice President of Global Counter Fraud Solutions at loss adjuster Crawford & Co. These developments are no “silver bullet” but they do help general insurers identify potentially fraudulent claims and prioritize them, he added.”
Thankfully, most honorable people would never resort to such deception. Now “fraud” is an ugly word, but notice how the article tells us that in fact everyday “honest” people may be inadvertently defrauding their insurance companies when they fill out their insurance applications. Notice what the article states:
“Fraud often starts at policy inception, Gracey explained. Almost 40 percent of proposal forms are filled in under a false pretext as policyholders seek to get better rates, even though this is material non-disclosure.”
Unfortunately, insurance fraud hurts all of us as it forces insurance premiums to rise. Nationwide Insurance is working diligently to keep your premiums as affordable as possible. Together, Lloyd Pro Group and Nationwide Insurance have been helping Atlanta Georgia protect what matters most since 1985. Lloyd Pro Group can be reached at (770) 381-5000
[...] honest with your insurance company. Sad to say, but insurance fraud is the biggest reason why insurance rates go up and claims will be [...]
@ December 21st, 2009 at 10:34