Crushing fraud can help relieve pressure on insurance premiums

Some estimates suggest that 20 cents of every premium dollar go to cover the cost of insurance fraud.

A 2022 study conducted for the Coalition Against Insurance Fraud found that nationally, insurance fraud costs consumers a mind-boggling $308.6 billion a year. I say it costs consumers because insurers take losses due to fraud into account when their actuaries calculate insurance premiums. For a family of four, that comes out to about $3, 800 a year, or slightly less than $1, 000 per person.

What could you do with an extra $3, 800 a year? You could take a nice vacation, start a renovation project, make a down payment on a new car, pay down a debt or deposit it in a savings account for a rainy day.

Insurance fraud takes many forms. Here are some examples: · A motorist who didn't have collision insurance could have a crash, call their insurance company to add collision coverage and then claim the wreck occurred after the collision coverage was added.

· Someone could rent a moving truck and stage an accident with a friend. Then they'd fake an injury to collect on the trucking company's insurance.

· A worker could fabricate an injury or exaggerate a legitimate injury to claim additional workers' compensation money.

· A homeowner or renter could sell expensive jewelry to a pawn shop and then file a homeowners' or renters' insurance claim, saying the jewelry was stolen. · A policyholder could misrepresent information on an insurance application to obtain a lower premium. · Someone could create fraudulent healthcare provide invoices on a computer to obtain payments for care they did not receive.

· A provider could bill the insurance company for services not provided, or upcharge for services that were provided.

I've been fighting insurance fraud since the I first took office as your insurance commissioner in 2017. In addition to more than doubling the number of Special Agents investigating insurance fraud and other white-collar crimes, I've hired a team of special prosecutors to work with local district attorneys across North Carolina to prosecute insurance fraud.

Last year, we made 505 arrests, obtained 207 convictions and returned $10.5 million to insurance companies in restitution and recoveries. Here's the kicker: We need your help. If you suspect insurance fraud or other white-collar crimes, don't be shy. You may anonymously report it by calling the Department of Insurance's Criminal Investigations Division at 919-807-6840 or toll free from anywhere in North Carolina at 888-680-7684. You may also report it online at www.ncdoi.gov.