308.6 Billion A Year-The Cost of Insurance Fraud

Insurance Fraud

The annual cost of insurance fraud to businesses and consumers is $3,860,000,000.00 in America according to The Coalition Against Insurance Fraud. The Coalition broke down the most common types of insurance fraud as follows;

  • Life insurance: $74.7 billion
  • Property & casualty insurance: $45 billion; auto theft fraud totaled $7.4 billion
  • Health insurance: $36.3 billion
  • Workers’ compensation: $34 billion ($9 billion from premium fraud; $25 billion in claims fraud)

While insurance companies, insurance agents and governmental agencies can all assist in reducing Insurance fraud, one of our partner companies is on the cutting edge in its efforts to reduce fraud. Central Insurance led by President Evan Purmort and Director of Special Investigations & Recovery Jeff Lieberman.  Click here to visit Jeff’s article explaining his approach to fraud detection and how this can save business and consumers millions if not billions of dollars a year.

Insurance fraud involving property and casualty coverage is a federal crime when it affects interstate commerce. Fraud in health insurance can also be prosecuted as a federal crime. As you can see fraud is not taken lightly by governmental entities and regulators but it is everybody’s job to be on the lookout for insurance fraud not just the Jeff Liebermans of the world. The Trusted Choice Insurance Agents at Richey-Barrett are not only here to help you with your insurance and reaching your risk management goals we are looking out for insurance fraud as well.

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