U.S. Insurers Say Fraud Costs on the Rise: Survey

 Thursday, October 11, 2012

 Insurance Journal

Forty-five percent of insurers estimated that insurance fraud costs represent 5-10 percent of their claims volume, while 32 percent said the ratio is as high as 20 percent. This is according to a survey of U.S. insurers showing the high cost of insurance claims fraud conducted by FICO, a provider of predictive analytics and decision management technology, and the Property Casualty Insurers Association of America (PCI). More than half (54 percent) of insurers expect to see an increase in the cost of fraud this year on personal insurance lines — policies designed to protect individuals and families — while less than three percent of insurers expect to see a decline in the cost of fraud on personal lines.
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