Florida grapples with growing insurance fraud problem
Insurance fraud is growing in Florida, according to the National Insurance Crime Bureau, a non-profit organization that works to address insurance-related crimes. The organization has released a new study highlighting insurance fraud throughout the U.S. The study shows that Florida is experiencing a growing number of questionable insurance claims, many of which are within the realms of auto and homeowners insurance coverage. The growing prevalence of insurance fraud may be due to ineffective regulations in the state.
Study shows questionable claims are becoming more common
According to the report from the National Insurance Crime Bureau, insurance fraud has risen by approximately 23% in Florida over the past two years. South Florida is the largest source of origin of these questionable claims. Homeowners insurance appears to be the most ideal target for those that would commit insurance fraud, especially in Miami-Dade, Broward, and Palm Beach counties. These counties are well known for their sinkholes, which regularly cause damage to properties.
Homeowners insurance and auto insurance are popular targets for fraud
Despite the prevalence of sinkholes in Florida, many of the claims related to sinkhole damage are fraudulent, as many of these offending sinkholes either do not exist or have caused only moderate damage to property. Nonetheless, sinkholes appear to be a very popular subject in the realm of insurance fraud. Auto insurance is also a very popular medium for those committing insurance fraud due to the no-fault laws that govern the state’s auto insurance market.
More aggressive regulations recommended to combat fraud
Florida is not the only state that is grappling with growing insurance fraud. New York is another state where auto insurance fraud, in particular, is spiking. Nevada has also been seeing a growing problem with insurance fraud. The National Insurance Crime Bureau has begun urging state lawmakers to take more aggressive action on the issue of fraud by introducing stricter regulations and working more closely with the insurance companies that work throughout the country.