Insurance companies reported that ever since 2008 there has already been an increase of twenty four percent in suspicious claims. In that same year, over 74,146 questionable claims were discovered. A questionable claim is picked out when detected by fraud indicators used by the industry that may cite up to 7 reasons in each claim that may cause reason to be red flagged.
These cases were then passed on to the National Insurance Crime Bureau (NICB) and were examined, compared and matched to prior incidents from other member insurance companies. Upon this process the latest figures in questionable claims has risen more than 91,700 in case volume. This signified a twenty four percent increase from 2008.
The 2010 report by NICB on questionable claims examined 6 referral categories of insurance lines. This includes casualty, commercial, vehicle, worker’s compensation, and miscellaneous which were all referred in 2010 along with those referred last 2008 and 2009.
Glass claims have been a thorn in the side of the industry and continue along with a growing increase in fraudulent towing and storage claims. Just these few catagories have been cause for making the top two increases cited giving way to almost a 450% increase alone.
Currently, more insurance companies are installing new fraudulent analytic software to help in this ever-growing battle of fraud.