Suspicious insurance claims higher compared to 2008

February 28, 2011
By: Bruce Berry

A report on questionable insurance claim activity last year showed suspicious claims have been on the rise since 2008.

The National Insurance Crime Bureau reported that in 2010, 91,797 claims were referred to the bureau by its member insurance companies for further investigation based on indications of possible fraud. That figure was up 8.7 percent from 2009 and 24 percent since 2008, said the report. Auto-related claims were reported the most, with cases of auto glass fraud climbing 450 percent from 2009 and reports of inflated towing and storage bills rising 116 percent.

The report categorized suspicious claims under six different referral reasons - property, casualty, commercial, worker's compensation, vehicle and miscellaneous.

NICB president and CEO Joe Wehrle urged consumers to become more vigilant, asking them to report suspected fraud when it occurs.

"Insurance fraud is not a victimless crime," said Wehrle. "It affects all consumers who buy insurance because the money lost to fraud is recovered, in part, through higher premiums."

Data from the NICB estimates as many as 10 percent of all insurance claims are fraudulent, adding that it costs the American public billions of dollars each year.
 

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