NICB Urges Action as Insurance Fraud Adds $900 to Annual Premiums

The National Insurance Crime Bureau (NICB), in partnership with the Anti-Fraud Alliance, has launched a national awareness campaign warning consumers about the widespread and costly impacts of insurance fraud. The campaign highlights how fraud adds approximately $308.6 billion in annual losses, translating to about $900 more per year in premiums for the average American policyholder.

Insurance fraud affects nearly every line of coverage and frequently targets people in moments of vulnerability. Whether it’s fake contractors appearing after a storm, staged accidents, predatory towing services, or billing for unrendered medical treatments, fraudsters rely on confusion and pressure tactics to carry out schemes that ultimately cost insurers and consumers alike.

Claims professionals must remain vigilant as fraudulent activity continues to evolve across auto, property, and health insurance sectors. NICB’s call to action underscores the importance of recognizing red flags, from unnecessary services and inflated claims to pressure to sign over benefits. Adjusters should be prepared to educate policyholders, especially in catastrophe scenarios, on how to identify and report suspicious behavior.

NICB’s campaign also emphasizes that consumers play a critical role in stopping fraud by learning the warning signs and reporting incidents. The message is clear: insurance fraud is not a victimless crime, and stopping it requires proactive efforts from both the industry and the public.