More Insurance Fraud Statistics

I've written several posts about insurance fraud and how it's costing the average consumer a lot of money with increasing premiums, so here's a few sobering statistics to show just how it's become such a rampant problem.

• The Coalition Against Insurance Fraud estimates $80 billion in fraud a year world wide for all the different types of insurance.

• Check out these stats from the RGA 2017 Global Claims Fraud Survey, where 27 major insurers around the globe gave data in the process.

• 3-4% of all claims are fraudulent; or put another way, about 1 in 30 claims is identified as fraudulent


• 5% of identified fraud cases involved insurance agent complicity


• Where underwriting controls appear strongest - North America - the incidence of claims fraud is reduced


• Of the fraud identified, less than 2% resulted in a fraud prosecution


• Fraud investigation can extend the end to end time for consumers by up to 8 times the normal processing time

For more info on what affects insurance rates, check out the following posts....

https://gobluecircle.com/insurance-news/why-distracted-driving-affects-insurance-premiums/
https://gobluecircle.com/insurance-news/why-extreme-weather-events-affect-insurance-premiums/

photo courtesy of the Coalition Against Insurance Fraud

Did you know that there is an online "Insurance Fraud Hall Of Shame", where some of the most despicable people are called out for their crimes. Unfortunately, not only are the insurers getting bilked out of big dollars and the honest consumer paying the costs in increased premiums, but in many of the cases listed, people died or were severely traumatized, which is even worse.

For more info on fraud and how it affects insurance rates, check out the following posts....

https://ontheroadwithpaul.blogspot.com/2019/05/understanding-auto-fraud.html
https://ontheroadwithpaul.blogspot.com/2018/04/cyber-security-and-computer-based-fraud.html