Fraud: Part 2 — Insurance Fraud

Customertimes is a digital consultant firm that recently polled 2,000 people to see how the economy, the adoption of technology and the policies set by insurers have affected the insurance industry as a whole.

Pretty dry stuff until up came the question of insurance fraud.

It seems that 20% of those responding said they’ve considered committing insurance fraud. Another 30% said they know someone who has considered insurance fraud.

  • Shockingly, 10% of those surveyed said they actually went through with the fraud
  • Half said they did so out of desperation or for financial gain

A quarter of those committing the fraud didn’t know there were consequences and 35% said they committed the fraud because of being urged to do so by their peers.

Many of those committing the fraud justified their crimes by blaming loopholes and the insurance policies they purchased.

  • 45% say the loopholes in their policies made it easier to commit fraud
  • 20% say insurance policies are unfair and that justifies breaking the rules
  • 66% say companies committing insurance fraud is a more serious problem than what they’ve done as individuals

Of the 2,000 surveyed, a huge percentage think technology and AI are going to improve the ability of insurers to detect fraud.

  • 71% say AI and improvements in data analytics will prevent insurance fraud
  • 66% say they are willing to share more personal data if it will help prevent fraud and lower their insurance rates

Source link: Insurance Journal —

Source link: Claims Journal —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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