Organized fraud is extremely difficult to detect, particularly because schemes have become increasingly complex. According to the Insurance Information Institute (I.I.I.), the National Insurance Crime Bureau (NICB) released data showing that questionable claims referrals related to organized insurance fraud grew 47 percent from 2008 to 2011, reaching 3,146 questionable claims referrals in 2011. The NICB [...]
Fraud
The March 2013 CoreLogic National Foreclosure Report stated that more than 1 million homes are in some stage of foreclosure. Here are a few more March 2013 foreclosure insights: Completed foreclosures rose from 52,000 in February 2013 to 55,000 in March, an increase of 6 percent. The five states with the largest number of completed [...]
Claims fraud may occur in only 2 percent of claims, according to some estimates, but early detection — and prevention — are growing in importance. Why? According to a new study by Celent, as reported in Insurance Networking News, property/casualty insurers have faced increasing challenges in generating underwriting profits. Those challenges result in more pressure [...]
What are your fraud prevention and detection investment priorities? Are you keeping up to date? Always important questions, of course, they now come in the context of increased suspicious claims activity (according to the National Insurance Crime Bureau), greater organized fraud sophistication, and a wave of emerging technologies that can help special investigations units (SIU) [...]
Is your claimant or person of interest in bankruptcy? Are there outstanding liens against him or her? Claims and SIU professionals need as many insights as possible when evaluating a claim, including background information on the claimant — and other parties to the claim. Information from bankruptcy, liens, judgments, and foreclosure filings can drastically help [...]
In the war on fraud, the bad news just keeps coming. In a new study published by Aite Group, total fraud losses for the property/casualty insurance industry are estimated at an eye-popping $64 billion. There’s more: The study predicts that fraud losses will climb to $80 billion by 2015. Of the $64 billion total for [...]
