Insurance Fraud is on the Rise

Insurance Fraud is on the Rise

What’s one of the fastest-growing industries in the country? Insurance fraud.

From 2010 to 2012, cases of suspected insurance fraud rose 27% nationwide – a problem that is growing at an accelerated rate. From 2010 to 2011, cases grew by 9%, and the following year almost doubled that growth with a 16% increase.

Our California residents have the highest risk with almost twice as many questionable claims (58,415) in the three-year period than any other state. Florida had the second most with 29,086 questionable claims.

The top types of fraudulent insurance claims are:

• Auto Insurance
• Home Insurance
• Workers’ Compensation and Employer’s Liability
• Commercial Auto Insurance
• Commercial General Liability
• Personal Property/Fire Insurance

Why does this affect you and your business? Indirectly, we all pay for it in the form of higher insurance rates. More importantly, if your business is hit with a false claim and you aren’t prepared, there can be costly outcomes.

Report suspicions of fraud anonymously to the National Insurance Crime Bureau (NICB) by calling (800) 835-6422, texting “fraud” to 847411 or on the NICB website.

If you feel like this has happened to you, or have any questions on the steps you can take to prevent it, contact me as soon as possible.

Figures released by the National Insurance Crime Bureau.

Casey Kolb

ckolb@vanbeurden.com

Risk Management Consultant | Woodland