Insurance fraud costs the country $308.6 billion a year, a much higher amount than the $80 billion estimated back in 1995, according to a new report from the Coalition Against Insurance Fraud that …
Insurance fraud costs the country $308.6 billion a year, a much higher amount than the $80 billion estimated in 1995, according to a.
The coalition, when it formed in 1993, commissioned a study to get at the cost of insurance fraud and came up with an estimate of $80 billion, a number that is highly cited. But after 27 years it is both outdated and understated. Adjusting for inflation, that original number would be $155 billion in today’s dollars
The original estimate didn’t include additional insurance lines now tracked by the coalition, which includes 270 member organizations including the FBI, Department of Justice, state insurance departments and every major insurance carrier. The new numbers include health care, workers’ compensation, and life and disability insurance.
To calculate an updated number, the coalition turned to J. Michael Skiba, program director of criminal justice at CSU Global in Denver who has the nickname of “Dr. Fraud” within the insurance industry. Skiba has argued that insurance fraud is viewed as a low-risk and high-reward offense that takes a heavy toll on society. Insurers bear the cost initially, but those costs are then passed through to customers in terms of higher premiums.
That fraud estimate works out to $932.63 per year for every person in the U.S. Across someone living the average number of years, those losses work out to $73,491, according to Matthew Smith, executive director of the coalition.Property and casualty insurance fraud — $45 billionLife insurance fraud — $74.7 billionDisability fraud — $7.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SEC Sues Insurance Executive, Alleging ‘Massive’ FraudThe SEC sued insurance magnate Greg Lindberg in the first government case accusing him of fraud. Lindberg faces bribery charges in North Carolina.
Read more »
City council OKs engagement plan for downtown arena sitesVote sets up round of consultation on pair of proposed sites — one of which comes with a significantly higher price tag.
Read more »
Coinbase, FTX, Binance Get Inquiries as Congress Looks to Crack Down on $1 Billion Crypto FraudThe House Committee on Oversight and Reform is dialing up the pressure on federal agencies and crypto exchanges to protect Americans from crypto fraudsters.
Read more »
Another property insurer exits the Florida market - Jacksonville Business JournalThe move comes as Citizens Property Insurance Corp. balloons to more than 1 million policies.
Read more »
New Jersey man sentenced for Tom Brady Super Bowl ring fraudA New Jersey man who posed as a former New England Patriots player in order to buy and sell Super Bowl rings that he claimed were gifts to Tom Brady’s family was sentenced Monday.
Read more »