The prevalence of attempted insurance fraud is staggering and costly. But maybe
even more startling, and certainly more evasive, is the often muted response
to such crime. The Coalition Against Insurance Fraud estimates that the insurance
fraud costs the industry more than $308 billion a year. No one knows the full amount because most insurance fraud attempts are successful.
This article examines the extent of harm caused by insurance fraud, as well as strategies to deter and ultimately defeat it. You can read it at CPCUSociety_INSIGHTS_Winter2022_Insurance_Fraud
To eradicate, or at least significantly reduce, fraud, insurance companies and states must work together, with each state investing in aggressively and vigorously fighting this crime. Today, a person who commits insurance fraud need only care
payment delays or reduced amounts. Crime of insurance
fraud is so small, relative to the amount of fraud, that it does not exist – and certainly does not act as a deterrent.
This article was originally published in the Winter 2022 edition of Insights: A Professional Journal of the CPCU Society and is shared with permission from The Institutes CPCU Society.
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Barry Zalma, Esq., CFE, now limits his practice to serving as an insurance consultant specializing in insurance coverage, insurance claims management, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims attorney and more than 54 years in the insurance industry. He can be reached at http://www.zalma.com and email@example.com
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