automobile insurance fraud
DESCRIPTION
Automobile Insurance Fraud. Challenges and solutions……. The fraud challenge - $$$$$. Conning & Company Study $ 96.2 Billion – All lines Coalition Against Insurance Fraud $ 79 Billion – All lines National Insurance Crime Bureau $ 20 Billion – P&C. The fraud challenge - % of claims. - PowerPoint PPT PresentationTRANSCRIPT
Automobile Insurance Fraud
Challenges and solutions……
The fraud challenge - $$$$$
Conning & Company Study
$ 96.2 Billion – All lines
Coalition Against Insurance Fraud
$ 79 Billion – All lines
National Insurance Crime Bureau
$ 20 Billion – P&C
The fraud challenge - % of claimsRand Corporation study:
28% of all auto claims
10% of all health care $$ expended in the
U.S.
The fraud challenge – Types of Scams
Staged Auto Accidents Paper Accident Schemes Health Insurance Fraud Staged Vehicle Theft (owner “give-up”) Auto Repair Fraud Complex/Organized Crime
Why is fraud so big?
Systems are easy targets Low risk crime Low legal priority (prosecutors) People tolerate fraud Some insurers are apathetic
How do WE pay for fraud?
People lose their savings. Premiums stay higher Consumer goods cost more Innocent people injured/killed
Fighting Back – Solutions!
Industry Solutions– Special Investigations Units (SIU)– Consumer Education– Employee Training– Technology
• Database Organizations (ISO, NICB)
• Link Analysis Technology
• Predictive modeling
Fighting Back – Solutions!
Governmental Solutions– 37 State Fraud Bureaus– Closer scrutiny of phony insurers– Tougher fraud laws– Stiffer Federal penalties– Fraud plan / SIU requirements
Progress to date??
State fraud prosecutions tripled over past 10 years
Fewer people believe it’s OK to pad claims (IRC study)
Typically a 4-11:1 return on investigative investment (premium control)
The Future??
Still dangerous….– Internet will hatch new schemes as consumers
buy on-line coverage.– Global economy is igniting huge insurance $$
laundering schemes.– Corrupt organized groups continue to thrive.
Partners in the fight…..
National Insurance Crime Bureau (www.nicb.org)
Coalition Against Insurance Fraud (www.insurancefraud.org)
State Fraud Bureaus
Everyone’s solution
Insurance fraud will disappear only when criminals realize fraud is a fast highway to jail, not an easy road to riches. (Coalition)
