Fraud Facts

Insurance Fraud Statistics

"Insurance fraud, whether committed by sophisticated criminals, otherwise honest consumers, or by insurance company employees and owners, is an increasingly expensive burden on the U.S. economy, affecting all citizens. This illegal activity diverts vital resources away from businesses, law enforcement, the civil justice system, regulatory agencies and local emergency services", states the Coalition Against Insurance Fraud.

Insurance fraud is the second costliest white-collar crime in America, after tax evasion. It is estimated that $80 billion is paid out each year in fraudulent insurance claims. It is estimated by the Coalition Against Insurance Fraud that the average American household pays over $950 a year in additional premiums to cover the cost of insurance fraud. Healthcare Fraud alone costs Americans $54 billion a year according to industry estimates.

The Insurance Research Council revealed some alarming information obtained from a recent survey regarding types of insurance crime that is considered "acceptable" by an unusually high percentage of the public. These types of insurance fraud include the following followed by the percentage of those surveyed who felt that it was acceptable:

• Increasing the claim to cover the deductible - 40%
• Increasing the claim to cover the premiums paid - 36%
• Including defective or obsolete appliances on a lightning claim - 29%
• Listing adults as main driver of a car being driven by an under age driver - 20%
• Omitting accidents/tickets from an insurance application - 14%
• Continuing medical treatment to increase the value of a claim - 11%
• Pretending a hit-and-run accident occurred to submit a claim - 7%
• Abandoning a car and reporting it stolen to the insurance company - 6%
• Reporting an injury at home as work related in order to collect workers' compensation benefits - 10%
• Cooperating with lawyers, doctors or chiropractors to file false or exaggerated workers' compensation claims to get money from insurers - 17%

Insurance fraud is a crime that costs Louisiana citizens alone over 2.3 billion dollars a year, through higher taxes, increased insurance premiums, and higher costs of goods and services.