Is Insurance Fraud on the Rise?
By Alan Schafer, Thomson Reuters
Is insurance fraud on the increase? Or has stepped-up enforcement highlighted the topic? On April 27th (per the Miami Herald), Miami police announced that “Operation Crash Clinic” resulted in 13 arrests and the closure of 3 clinics. This insurance fraud was not an isolated occurrence. It comes on the heels of charges filed in February for purportedly the largest no-fault insurance fraud in New York. These schemes raise everyone’s insurance costs. The schemes typically involve the collusion of multiple parties, including “victims,” attorneys, and health providers. Each investigation can take 1-2 years to complete. Insurance SIU personnel typically provide invaluable assistance to these investigations.
One might hope that with such high visibility enforcement, insurance fraud may decline. Through the end of 2011, however, the National Insurance Crime Bureau reported that questionable insurance claims increased year-over-year by 9.4% to a record high. Online tools built specifically for insurance investigations can help to combat insurance fraud.