Data from the Insurance Research Council has indicated that there is about $5 to $7 billion in inflated auto insurance claims made every year, though the overall cost that would occur if insurance companies in any sector did not make efforts to detect scams would be significantly higher. Every time fraudulent claims get past the insurers, the end result is that the cost will trickle down to the clients and lead to higher premiums. Therefore, insurance companies have put extensive efforts into place to help prevent scams from occurring in…
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NICB announces Q3 increase in questionable claims by 7 percent
The National Insurance Crime Bureau (NICB) has released its third quarter 2011 results from its referral reason analysis of questionable claims (QC). This report investigates six different types of claim referral reason categories. They are: workers’ compensation, casualty, property, commercial, vehicle, and miscellaneous. It compared the results among the third quarters of every year from 2009 to 2011. Questionable claims are those that are made to member insurance companies of NICB which must be referred to the bureau for closer review and potential investigation as a result of certain red…
Read MoreReport shows the discrepancy of auto insurance claims in New York City
The Insurance Research Council of Pennsylvania has released a new report concerning auto claims and insured losses in New York City. New York has become infamous in the insurance industry for the multitude of auto claims that come from the state. In recent years, more claims have been coming in to insurers, many of which have been found to be fraudulent. The report highlights the differences in claiming behavior throughout the state and touches upon the discrepancies found in claims. According to the report, personal injury protection claims have risen…
Read MoreFEMA 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 MoreQuestionable claims activity on the rise
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…
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