Insurance Fraud: The $80 Billion Cost of Lying [Infographic]
By Justin R. Brown
Denver, Colorado - August 13, 2013 A new infographic developed by Bankrate Insurance, InsuranceAgents.com, and InsuranceQuotes.com calls attention to the estimated $80 billion insurance fraud occurring across the country on an annual basis. Money and time spent uncovering fraud has yielded research results that are driving companies to help report and reduce fraud throughout the insurance industry.
“Insurance fraud is a problem that impacts everyone equally from the student with renters insurance up to life insurance buyers and large group health insurance policy holders.” surmises Justin R. Brown, Marketing Manager for Bankrate Insurance. “Many people think that it’s strictly a problem resulting from underhanded consumer behavior, but since it’s a money making scheme, the system is tested from all angles.”
Insurance fraud isn’t limited to just one industry, either. Staged accidents with fake injuries plague the auto insurance, long term care insurance, and workman’s compensation markets. In comparison, fraudulent thefts or loss of property drive up the premiums for home and business insurance, and disappearances or fake deaths lead life insurance companies to release beneficiary payments that may not be due.
The Rand Institute for Civil Justice estimates that 1/3 of individuals exaggerate auto insurance claims, in contrast, the Coalition of Insurance Fraud notes that 2 in 5 people don’t feel it’s a punishable crime.
Insurers have had success uncovering the volumes of fraud happening in the United States through a variety of methods, including the use of private investigators, special investigative units, and the use of suspicious loss indicators among others. These efforts led fraud bureaus to order $346 million in restitution during the year 2010 alone. In addition, 42 states have commissioned state specific fraud departments to uncover and target fraudulent insurance claims to tackle what looks on the surface to be the second largest economic crime in America behind tax evasion.
InsuranceAgents.com is part of Bankrate Insurance, a premier online insurance lead provider offering first-rate auto, home, health, life, business, renters, and long-term care insurance leads. Our expertise in insurance lead generation spans over 30 years and includes the renowned NetQuote, InsureMe, and AgentInsider brands. To find out more, please visit http://blog.insuranceagents.com/our-company.
View the infographic here.
Justin R. Brown
Marketing Content Manager