Insurance fraud costs insurers and their customers at least 10% of premium dollars each year, and some authorities estimate payments may be as high as 20%. No company is immune to this drain of their financial resources. Several large insurers have started multi-million dollar lawsuits against organized criminal enterprises to both re-capture some of those losses and to convince the fraud artists to take their business elsewhere or to stop defrauding insurers. There is no evidence the criminals will stop. There is evidence they will leave the tough insurers alone. The companies who pay claims without recognizing the frauds will have no choice but to pass on the cost of the frauds by increasing premiums. |
