Study finds insurance fraud costs at a record $308.6 billion annually – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.ā„¢

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Top Stories
Topics
    • Life Insurance News
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Articles
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
Sign in or register to be anĀ INNsider.
  • Exclusives
  • NewsWires
  • Magazine
  • Webinars
  • Free Newsletters
  • Insider Pro
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Top Stories
Top Stories RSS Get our newsletter
Order Prints
August 25, 2022 Top Stories No comments
Share
Share
Tweet
Email

Study finds insurance fraud costs at a record $308.6 billion annually

Insurance fraud at $308.6 billion annually.
By Doug Bailey

Insurance fraud costs the US economy a record $308.6 billion annually according to a new comprehensive study by the Coalition Against Insurance Fraud, the first of its kind in more than 25 years.

The Coalition study, which examined all types of insurance products, said the rising price of fraud penalizes every living American an equivalent of $932.63 a year, or $3,750.52 for the average US family.

ā€œThere is a huge and monumental impact that insurance fraud causes to American citizens, American families, and to our economy every single year,ā€ said Matthew Smith, the coalition’s executive director. ā€œWe updated our study because regulators of insurance need to know this information, as do legislators in Washington DC and in our state capitals all across America.ā€

Related stories

  • Study finds diversity progress neglects career advancement
  • Allstate reports $1.4B loss for 2022; increases rates, policy restrictions

ā€œThere is a huge and monumental impact that insurance fraud causes to American citizens, American families, and to our economy every single year.ā€
— Matthew Smith, Coalition Against Insurance Fraud executive director

The coalition called for carriers to commit to new and more resources to combat insurance fraud and for the formation of a new task force to focus on fraud in each specific insurance line.

The 40-plus page report compiled statistics from such sources as the FBI, the Insurance Information Institute, the Insurance Research Council, the Centers for Medicaid and Medicare Services, the American Association of Retired Persons, the National Insurance Crime Bureau, the United States Government Accountability Office and the US Census, among others.

In the eight categories of insurance studied, life insurance led the pack, contributing $74.7 billion to the overall annual fraud total, followed by Medicare and Medicaid ($68.7 billion), property and casualty ($45 billion), and healthcare, premium, and workers compensation fraud with about $36 billion each.

ā€œInsurance fraud is the crime we all pay for,ā€ said Smith. ā€œUltimately, it's American policyholders and consumers that pay the high cost of insurance fraud.ā€

The Coalition was created in 1993 and says it is the nation’s only consumer advocacy organization devoted to educating and protecting American citizens from the cost and damage of insurance fraud. The Coalition consists of more than 260 organizations committed to the fight against insurance fraud, including federal and state agencies, insurance regulators, legislative and insurance trade associations, state attorneys general, prosecutors, law enforcement agencies, the majority of America’s leading insurance carriers across all lines of insurance, and select companies and law firms assisting in fighting insurance fraud.

The last time the Coalition released an overall fraud study was 1995, when the figure was $80 billion, but that did not include some lines of insurance in the updated study. Colorado State University Global’s White Collar Crime Task Force is the research arm spearheading the study with the Coalition.

A copy of the full report can be found here.

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached atĀ [email protected].

Ā© Entire contents copyright 2022 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Older

The Legacy Group joins forces with AmeriLife’s Senior Market Advisors

Newer

Americans’ money worries may impact life insurance sales

Advisor News

  • Fed slows rate hikes even as Powell says there's more work to do
  • Mortgage rates in U.S. fall again, hit 6.09%
  • 1 in 3 Americans struggling financially but goal-setting is a game-changer
  • Advisors bet on US stocks to outperform in 2023 amid tech rebound
  • Investors want more ESG information from companies
More Advisor News

Annuity News

  • Study: Does pessimism really suppress annuity sales?
  • Sweet streams of income: ChatGPT, the bard of annuities
  • F&G Annuities & Life announces equity investment in life IMO SYNCIS
  • Investors scrambling to lock in rates propel annuity sales to record highs
  • North American and Annexus launch new fixed index annuity
Sponsor
More Annuity News

Health/Employee Benefits News

  • State: all insurers failed to comply with Oregon Reproductive Health Equity Act
  • Will plan fix California health care?
  • Insurance giant Elevance to move into 15th state
  • Medicare card scam targets seniors for personal info
  • Yes, states are re-checking Medicaid and CHIP eligibility starting in April
More Health/Employee Benefits News

Life Insurance News

  • Chris Wilson tells court former friend Murdaugh confessed he was ā€˜stealing money’
  • State's motive testimony could prolong Alex Murdaugh murder trial
  • Equitable expands portfolio in VUL market
  • New date set for billionaire suspect accused of bribing state cabinet member
  • House approves bill protecting life insurance payouts from bankruptcy
More Life Insurance News

- Presented By -

Top Read Stories

  • Chicago news roundup: PPP fraud uncovered in Chicago, informant reveals $100K bounty on FBG Duck and more
  • Gov. Carney: Enrollment on Delaware's Health Insurance Marketplace for 2023 Reaches All-Time High
  • 25 people charged in fake nursing diploma operation
  • Missouri Department of Insurance: Over $24 Million Returned To Missouri Insurance Consumers In 2022
  • Connecticut addressing broker shortage amid The Great Unwinding
More Top Read Stories >

FEATURED OFFERS

Meet Encova Life
We know agents matter. You can count on our life team to be high tech, high touch and responsive.

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Articles
  • Monthly Focus

Top Sections

  • Life Insurance News
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
Ā© 2023 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.