"The complexity
of determining the cost of insurance fraud to the industry and
our economy is compounded by the lack of industry wide cost-of-fraud
data by line of business. However, we believe that insurance
fraud may be costing nearly $120 billion a year for property
and life – health insurers combined and as such, should
not be ignored by any company."
The
Quiet Catastrophe - Conning Insurance Research, 1996 Report on
Insurance Fraud in the US
The Canadian Coalition Against Insurance Fraud estimates Insurance
Fraud in Canada to be 10-15% of all private company Property and
Casualty claims, totaling at least $2 billion annually.
Canadian Coalition Against Insurance Fraud - Personal Injury
Insurance Fraud Study
- Examined 4,066 closed accident benefit (AB)
and bodily injury (BI) files with payments
- Files from across the Canada, except British
Columbia
- Private insurers annual AB and BI fraud cost
estimated at 15 - 22% of all paid losses - 1% of AB &BI
claims were staged or caused accident
- Premeditated or opportunistic fraud in 33.6%
of all AB claims and 26.6% of all BI claims
- AB/BI fraud highest in Ontario
- Premeditated or opportunistic fraud more prevalent
in major metropolitan areas
The Coalition asked the public:
- Is It Acceptable? - 5% said "yes"
- Is It Tempting? - 24% said "yes"
- Is It Easy? - 43% said "yes"
- Should The Problem Be Controlled? - 73% said
"yes" or "definitely"
- Are Insurers Doing Enough? - 54% said "no"
and 4% said "too much"
- Does Fraud Control Hurt Your Image? - 96% said
"favourable" or "no difference"
-
Do You Know Someone Who Did It?
- 25% said "YES"!
How many of the 25% could be YOUR claimants
or policyholders?
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