Federal Financial Crimes Enforcement Network to help Louisiana fight insurance fraud
Insurance fraud continues to grab headlines throughout the world of insurance news as states begin to combat the crime. Louisiana insurance officials have announced that the state has agreed to share information with the federal Treasury Department’s Financial Crimes Enforcement Network. The network was built to help states fight against insurance fraud. By participating in the network, Louisiana will have access to resources that will help regulators and law enforcement officials cut down on insurance fraud.
Commissioner Donelon highlights the economic implications of fraud
Insurance Commissioner Jim Donelon claims that insurance fraud is roughly the same throughout the U.S. Fraudulent claims have a direct impact on the insurance industry, according to Donelon. These claims lead to financial losses for insurance companies, who attempt to recover from these losses by instituting higher prices for coverage. Donelon notes that consumers are the ones that end up bearing the consequences of fraud as they are the ones that will be paying more for their insurance policies.
Federal regulators to use insurance information to help fight fraud
The Financial Crimes Enforcement Network will begin monitoring the state to document trends that exist in its insurance industry. Federal regulators will track suspicious financial activity and identify patterns that may exist in the system. Using information provided by the Louisiana Department of Insurance, the federal network will help close any loopholes that exist in the state’s insurance regulations. The network may also suggest legislative action be taken if new laws would help curb the growth of insurance fraud in the state.
Regulators launch awareness campaign to help keep consumers on the lookout for fraud
The information handled by the federal network will not come from the Department of Insurance alone. This information will also be provided by the states insurance companies, many of whom have been calling out for more aggressive action to be taken against the trend of insurance fraud. State insurance regulators have also launched a public awareness campaign in order to inform consumers how much insurance fraud is costing them. The Department of Insurance is purchasing space on billboards throughout the state to spread awareness.