Insurance Fraud — Hey, it’s Insurance, No Big Deal

Verisk and the Coalition Against Insurance Fraud just released details from a very disturbing survey. It shows that a very large — and significant — number of people age 44 and under are quite tolerant of insurance fraud.

That isn’t exactly surprising news for those working in the industry.

Matthew Smith of the Coalition against Insurance Fraud says the big worry for insurers in this survey is whether the respondents think insurance fraud is a crime. Many do not. For those over age 55, the answer is yes. But just 75% of those between age 25 and 44 think committing fraud against an insurer is a crime.

That leaves 25% thinking it’s okay.

Most disturbing is the attitude of younger people between age 18 and 24. Just 64% of that age group think it’s a crime. And close to 20% of those in that age group say insurance fraud is justified.

“insurance companies rip people off, so it’s fair,” is the conclusion of that 20%.

“This study should sound the alarm for insurers, consumer activists, regulators, and legislators on the state of fraud in America,” Smith said. “While it’s marginally reassuring that 84% of Americans in the survey consider insurance fraud a crime, the 16% that do not consider it a crime potentially represent more than 53 million Americans.”

Maroun Mourad heads up Verisk Claims Solutions.

“The results prove the continued need for insurers to be hypervigilant about the impact of fraud on their book of business,” Mourad said. “The fact that younger generations are more tolerant and motivated to commit claims fraud indicates that this problem is not going away and is likely to persist in the future. Carriers would be wise to set up a strong perimeter defense to ensure they are adequately and accurately detecting potential fraud throughout the policy life cycle.”

Here are some of the questions Verisk and the coalition asked the 1,500 respondents.

Do you consider insurance fraud to be a crime?

18-34 — 64.84%

25-34 — 74.37%

35-44 — 75.28%

45-54 — 87.50%

55-64 — 95.32%

65+ — 96.19%

I definitely would submit a workers’ compensation claim for an off-work recreation injury.

18-34 — 27.34%

25-34 — 18.41%

35-44 — 22.85%

45-54 — 7.08%

55-64 — 1.08%

65+ — 1.27%

I definitely would help a medical provider bill an insurance company for treatment I did not receive.

18-34 — 21.09%

25-34 — 17.69%

35-44 — 22.47%

45-54 — 5.00%

55-64 — 1.08%

65+ — 1.27%

I believe I am personally affected by insurance fraud committed by other people or groups across the U.S.

18-34 — 36.72%

25-34 — 45.13%

35-44 — 47.94%

45-54 — 62.92%

55-64 — 70.50%

65+ — 73.97%

Source link: Insurance Journal —

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