Ohio continues to grapple with insurance fraud
Insurance fraud hit a high in Ohio last year, according to the state’s Department of Insurance. The state agency has released data concerning the reports of insurance fraud and agent misconduct it had received throughout 2012. Regulators have been working to rein in on fraud throughout the state more aggressively. Fraud is often one of the major contributory factors to rising insurance prices, and regulators are keen to keep insurance rates manageable for consumers throughout Ohio.
Agency received 7,274 allegations of insurance fraud in 2012
According to the Ohio Department of Insurance, regulators processed 7,274 allegations of insurance fraud and misconduct. From these allegations, the agency launched 2,310 investigations into the matter of insurance fraud. Regulators identified more than 700 cases of civil and criminal violations according to the state’s insurance laws. This lead the agency to take action against 167 insurance agencies. The agency also instituted some $134,900 in fines against infracting parties and referred 71 individual insurance agents for prosecution.
Fraud having an effect on Ohio insurance market
Lieutenant Governor Mary Taylor, who is also the head of the Ohio Department of Insurance, notes that state regulators continue to take aggressive action on the issue of insurance fraud. Fraud often means heavy losses for insurance companies, which aim to recoup these losses by raising rates for coverage. Fraud also has an adverse effect on the state’s insurance market, as consumers become less likely to purchase coverage through agencies when there are allegations of misconduct occurring throughout the state.
State regulators work to raise awareness of insurance fraud
The Ohio Department of Insurance is currently involved in a campaign to raise awareness of the consequences associated with insurance fraud. State regulators are working with Ohio law enforcement to pursue prosecution against offending parties. Regulators hope to see the prevalence of insurance fraud drop this year as they work to make examples of those that had committed the crime in 2012.