California’s Department of Insurance is issuing over $3 million in grants to the state’s District Attorneys in an effort to battle the spread of fraudulent disability and health claims. The state has been wracked with fraud for several years, a fact that Insurance Commissioner Dave Jones has labored to rectify. According to Jones, the grants will be used to fun investigations and prosecutions as the state government looks to crack down on insurance fraud. Jones hopes that the move will also dissuade individuals from committing fraud, knowing that District Attorneys…
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FEMA requests money back from disaster victims
FEMA, the Federal Emergency Management Agency, admits disaster payments to unqualified applicants were largely their own fault. As a consequence of employees who did not completely understand eligibility rules made accounting errors, thousands of people were paid disaster relief money between 2005 and 2009; now they’re getting a bill from FEMA, wanting their money back. Victims of floods, tornadoes, wildfires and earthquakes that received help from FEMA as far back as 2005; may be getting a bill from FEMA. After discovering that there had been improper payments made, FEMA began looking into…
Read MoreAre no-fault insurance laws creating fertile ground for fraudlent claims activity?
Florida legislators are facing pressure to make changes to the state’s no-fault auto insurance laws. Several insurers want to see changes that would help reduce the amount of fraudulent claims they are receiving. State law requires that drivers have personal injury protection coverage that would help them pay medical expenses whether or not they were at fault. The law is designed to avoid lawsuits but insurers are saying that it is creating incentive for drivers to stage accidents. The Property Casualty Insurers Association of America, along with the Florida Chamber…
Read MoreThe business of fraudulent insurance claims
Today, there are some that make a living specializing only in insurance fraud by submitting doctored up insurance claims. The false claims received may include life insurance, third-party policy, personal damage and car theft. In many cases, the claim amounts asked for are considerably higher than the injuries, damage or loss that occurred – this can raise a red flag to potential wrong doing. Life insurance fraud is when someone makes false claims about faking an injury or death. The false documentation used is usually police reports, medical cards, marriage…
Read MoreIndustry leader fights fraudulent claims with new technology based tools
Claims typically account for up to 80% of an insurance company’s costs, making the way the claims process is managed vital to a company’s profitability. This is particularly true in times of economic uncertainty, with growing pressures to settle claims faster with transparent fairness – but with fewer resources. Unfortunately, the claims process is typically time-consuming and labor-intensive, involving multiple systems, outdated technology and distributed operational units. The resulting inconsistent processes and inefficient data management sap resources and slow turnaround times, which leads to negative customer experiences. Predictive insurance claims…
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