National Insurance Crime Bureau to focus summit on fraud activity in Colorado
Representatives from throughout the insurance industry will be flocking to Colorado to attend a fraud summit hosted by the National Insurance Crime Bureau. The summit will be focused on the Colorado insurance market, highlighting the problems with fraud it has experienced over the past several years. The state is home to a large number of staged auto accidents, thefts, and catastrophe-related fraud schemes that have placed a financial burden on consumers and insurance companies alike.
State is attractive to fraudsters because of its exposure to natural disasters
According to the National Insurance Crime Bureau CEO, Joe Wehrle, Colorado is an attractive market for insurance fraud because of its exposure to natural disasters. Wildfires, floods, and hailstorms are somewhat common in the state, and those looking to exploit consumers by posing as insurance agents or offer fraudulent repair services tend to flock to thrive in the state. This year, the Colorado Legislature approved a new law that improves the state’s theft and insurance fraud regulations, which may have positive implications for consumers and the insurance industry.
Fraud continues to be a very costly problem for the insurance industry and consumers
Insurance fraud is something that affects consumers and insurers alike. Consumers are often taken advantage of by fraudulent activities, such as staged accidents, which present financial challenges of their own. For insurance companies, fraud often results in significant losses. In order to recover from these losses, insurers typically raise rates on the coverage that they provide, further increasing the financial burden on consumers. States with no-fault auto insurance laws tend to see a higher degree of fraudulent activity than others.
Summit aims to highlight the ways insurers can fight back against fraud
Tackling fraud is not an easy task. In some states, laws make it difficult to identify and target fraudulent activity and the legal costs associated with combating fraud can be difficult to manage. The summit hosted by the National Insurance Crime Bureau aims to highlight various issues and draw attention to potential solutions that could help insurance companies combat fraud.