The fight against insurance fraud
Stung by fraud in connection with losses estimated at several billion dollars a year, the insurance industry is working hard with the criminal prosecution authorities to implement corrective measures. But public opinion could not prevent.
A survey sponsored by industry Insurance Research Council revealed that 25% of respondents believed that the pumping until the value of a claim has been submitted to an insurer OK. A complete list third said it was all right to do so, for the pro-rata basis, as an Out-of-bag costs to the insured. But at the same time, companies surveyed said the report, only a quarter of the insurer to consider fraud on insurance applications.
The new efforts to fight against fraud insurance, for example, better use of technology, in addition to the criminal law and civil sanctions, and the agreement enables insurers to merge the data for the insured, the huge number file claims against several companies. Other measures include psychological profiling and, in England, even lie detectors.
The insurance services from 50 countries, the authorities of state control of the fight against fraud Directors National Conference, which meets regularly, inter alia, the flag and the last new insurance cheat. Every ten States, but now have a kind of insurance for official functions of fight against fraud. New Jersey has an insurance fraud prosecutor armed with a budget of $ 30 million and new laws harsh.
Of course, a reduction of insurance fraud, the profitability of such a public place, given that the insurer MetLife (NYSE: MET - news - people), Hartford Financial Services (NYSE: HIG - News - people ), Allstate (NYSE: All - news - Human beings), John Hancock Financial Services (nyse: jhf - News - people) and Cigna (NYSE: CI - news - people). Assekuranz experts say that fraud represents 10% of claims - something like $ 100 billion. But consumer advocates say that the real number is not known, and perhaps less. Insurers say they spend $ 650 million a year alone in detecting fraud losses are not counted.
In addition, the insurance sector has been vowing a fraud has lasted for more than a decade, with zero results. This is not surprising. The fight against all forms of fraud on a large scale is difficult. It is labor and costly. Critics say many insurers - obviously afraid of bad-faith failure-to-pay-a-request for recourse - simply raise their prices to cover losses from fraud. Of course, for many consumers, the line is that this is not just a lot of time for small fraud.
But the anti-fraud efforts to continue again, in ways big and small. Florida, he made a second degree felony at the scene of a car accident for the filing of false bulletin claims or complaints after the coup is not fault auto insurance law. Maximum penalty: 15 years. The insurance for the Fight against Fraud Bureau of Massachusetts, an industry group, said this month it is to pay $ 5000 reward for information on the conviction of persons, self-insurance Scams — but only in Lawrence, where the claims are deemed at 3 ½ hour of the State average.
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