INFOGRAPHIC: 10 Things You May Not Know About Auto Insurance Fraud
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Transcript of INFOGRAPHIC: 10 Things You May Not Know About Auto Insurance Fraud
10 Things You May Not Know About
Auto Insurance Fraud(and a few about RISK:check® Point of Sale, too)
In 2012, personal auto insurance fraud cost insurers
$26 billion.If fraud were a country, its GDP would be greater than the GDP of half the world’s countries.
Florida currently leads the nation in questionable claims from organized insurance fraud, with 3,530 between 2008 and 2013.
Questionable claims rose 27% between 2010 and 2012.
In 2012 alone, there were116,268 claims — an average of 318 per day, or 13 every hour.
The biggest auto insurance fraud scam to date amounted to
The scam, which involved 31 people, occurred in February 2012 and aimed to defraud private insurance companies under New York’s no-fault automobile insurance law.
In a study of more than 3 million newly issued policies, more than 7% of the claims submittedwithin the first 125 dayswere questionable.
According to a study by the Insurance Research Council (IRC), 24% of respondents believe that padding a claim is acceptable as a way to compensate for the deductibles policyholders have to pay.
That means one-fourth of your customers may consider committing fraud during the life of a policy.
Because of fraud scams, N.Y. drivers paid an extra
$229 million in premiums.
That’s more than 90 million subway rides.
According to Bankrate.com, the 6 shadiest auto insurance fraud schemes are:• windshield replacement rip-offs• counterfeit airbags• staged accidents
• auto premium evasion• agent fraud• towing scams
According to a 2012 survey by the Coalition Against Insurance Fraud (CAIF), 88% of insurers said they currently employ antifraud technology.
Less than half of those insurers use their antifraud technology for nonclaims functions, such as underwriting fraud.
However...
According to the March 2013 edition of Best’s Review,
only 14% of auto insurers use any automated tools to detect underwriting or point-of-sale fraud.
In case you don’t have a calculator handy, that means 86% are not.
Fortunately, you’re not alone in the fight against fraud.
Introducing RISK:check Point of Sale,one of the most advanced antifraud underwriting models available
RISK:check Point of Sale provides you with real-time, accurate data so you can make smarter decisions at the point of sale to find and stop fraud before it starts.
Here are a few things about RISK:check Point of Sale you may not know:
1The RISK:check Point of Sale antifraud model integrates data from millions
of insurer policy and claims records. (All you need to provide is the application information — we do the rest.)
2Studies demonstrate that RISK:check Point of Sale can improve an insurer’s new business loss ratio by 3 to 6 points*. (This could translate to millions of dollars.)
You can use RISK:check Point of Sale with QuickFill®, Verisk’s data prefill solution, to achieve a more accurate, streamlined point of quote process. (According to our math, that equals more accurately priced policies, quicker quote times, and happier customers.)
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To learn more about how Verisk’s RISK:check Point of Sale can help you eliminate fraud at the point of sale, visit www.verisk.com/riskcheck
or call 1-800-888-4476 to speak with a sales representative today.
*Results may vary.
Sources:http://www.aitegroup.com/Reports/ReportDetail.aspx?recordItemID=1058http://www.imf.org/external/index.htmhttps://www.nicb.org/newsroom/news-releases/rise-in-questionable-claimshttp://www.iii.org/issues_updates/insurance-fraud.htmlhttp://www.fbi.gov/newyork/press-releases/2013/lawyer-pleads-guilty-to-involvement-in-massive-no-fault-automobile-insurance-fraud-schemehttp://www.mta.info/metrocard/mcgtreng.htmhttp://www.insurancefraud.org/downloads/techStudy_2012.pdfhttp://www.insurance-research.org/sites/default/files/downloads/PressReleaseDraftMarch12.pdfhttp://www.iso.com/blog/underwriting-2/most-carriers-not-fighting-fraud-at-point-of-sale/http://www.bankrate.com/finance/insurance/auto-insurance-fraud-schemes-1.aspx
$400 million.
© Insurance Services Office, Inc., 2013. ISO, the ISO logo, RISK:check, and QuickFill are registered trademarks and Verisk, Verisk Insurance Solutions, and the Verisk Insurance Solutions logo are trademarks of Insurance Services Office, Inc. AIR Worldwide and the AIR Worldwide logo are registered trademarks of AIR Worldwide Corporation. Xactware is a registered trademark of Xactware Solutions, Inc. All other product or corporate names are trademarks or registered trademarks of their respective companies.
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