Chairman Moran Issues Statement at Hearing on Insurance Fraud in America
"Good morning, everyone. I call to order this hearing of the Senate Subcommittee on Consumer Protection, Product Safety, Insurance and Data Security.
"As the title suggests, this Subcommittee exercises wide jurisdiction over a diverse range of topics. This will be our first hearing this
"Insurance fraud is a major concern not only for insurers - who bear the costs of fraudulent claim payouts - but also consumers, who see these costs passed on to them in the form of higher premiums. This hearing will examine the scope of insurance fraud at-large in
"The insurance industry has an enormous presence in
"The FBI reports that the sheer size of this industry makes it an attractive target for criminals by providing ample opportunities and bigger incentives for committing illegal activities, estimating the total cost of non-health insurance fraud in the
"With examples of insurance consumer concerns like recent news reports indicating Wells Fargo charged its automobile loan customers for collision insurance they did not need, this hearing is exceptionally timely. As for oversight, my staff is already in communication with Wells Fargo regarding these concerns, and I plan to follow up accordingly to gather additional information on the circumstances and what is being done to address these issues.
"While insurance is largely regulated at the state level, insurance fraud schemes can and do lead to federal criminal charges, and I believe the federal government must do what it can to protect consumers from bad actors who seek to defraud them. Raising consumer awareness is a significant component of helping consumers protect themselves, and to that end this hearing will highlight a number of current insurance fraud trends - including auto insurance fraud, workers' compensation fraud, fee churning schemes, and contractor fraud in the wake of natural disasters.
"As was a common theme among popular consumer "scams" discussed in this Subcommittee earlier this year, insurance fraud schemes are constantly evolving and growing in complexity over time. Technology must and will play a crucial role in catching sophisticated fraud activity, and I look forward to learning more from our distinguished witness panel about the use and efficacy of emerging technologies, data collection, and information sharing practices to better detect and prevent insurance fraud.
"Once again, thank you all for being here and generously delaying your August recess travel plans to be a part of this important hearing. With that I will now turn to the Ranking Member,
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