Changing Perceptions: The Growing Acceptance of Insurance Fraud in the US

Verisk and the Coalition Against Insurance Fraud have recently published a study shedding light on the demographics and psychology of insurance fraud in the United States.

One of the most concerning trends revealed by the study is the increasing acceptance of insurance fraud among younger generations. The research indicates that Americans aged 45 and younger display a higher tolerance for insurance fraud.

When asked whether they consider insurance fraud a crime, older respondents overwhelmingly responded in the affirmative, with 87-96% acknowledging its criminal nature. In contrast, younger Americans provided different responses, with only 75% of those under 45 viewing insurance fraud as a crime. The percentage further declined with age, with only 64% of the youngest group considering it a crime.

Several factors contribute to the increased acceptance of insurance fraud among younger Americans. Firstly, there is a higher tolerance for non-violent crimes in general among this demographic. Moreover, younger Americans often view insurance fraud as a cost of doing business for insurance companies, assuming that any related expenses will be transferred to customers through higher premiums. In contrast, older generations were raised with a zero-tolerance approach towards all forms of crime and perceive any offense as a violation of social norms and ethics.

Efforts to educate younger generations about the consequences and financial burdens associated with insurance fraud are necessary to correct the perception that it is not a crime.

The media can also play a vital role in discouraging fraudulent activities by promoting anti-fraud stories and reporting arrests and conviction cases. By raising public awareness about the negative impact of insurance fraud and its consequences, individuals may develop a stronger sense of ethical responsibility and actively reject participating in such activities.

The study’s findings highlight the urgent need to address the growing acceptance of insurance fraud among younger generations in the United States. With a significant generational gap in perceptions, efforts to educate and raise awareness about the true nature and consequences of insurance fraud become paramount. Public education efforts should emphasize that insurance fraud is not a victimless crime and that its financial impact affects everyone, including themselves, their friends, and their family members.