A recently released analysis by the Florida Division of Insurance Fraud that details the impact of insurance fraud in the state and globally said that "the increase in insurance fraud is indisputable; FY 2008/2009 resulted in a 21-percent increase in referrals received by the Division of Insurance Fraud from FY 2007/2008."
In the Impacts of the Economy and Insurance Fraud study, division researchers wrote that fraud in Florida appeared to be concentrated in specific areas, notably vehicle claim fraud, marine (watercraft) claim fraud, mortgage fraud, homeowners' claim fraud, workers' compensation premium fraud, and disability claim fraud. It further noted that in vehicle and homeowners' claims, there has been an increase in related arson-for-profit incidents. In comparing fraud incident reports in FY 2007/2008 and FY 2008/2009, the study showed that in Florida:
o Marine fraud increased by 44 percent.
o Fraudulent homeowners' claims - fictitious claim or damage - increased 9.6 percent.
o Mortgage fraud referrals increased 1,291 percent.
o Workers' compensation fraud by employees decreased 26 percent.
o Workers' compensation fraud - employer premium - increased 135 percent.
o Disability fraud increased 17 percent.
The study also offered information on fraud in several other states:
o California reported a 25-percent increase in referrals about suspected vehicle-arson fraud cases in 2008 compared with 2007.
o Hawaii reported a 61-percent increase in convictions for auto insurance fraud in 2008 compared to 2007.
o Pennsylvania reported a 30-percent increase in insurance fraud and related crimes in 2008 compared to 2007, with car insurance fraud accounting for 46 percent of total fraudulent claims.
o New York reported that its PIP claim costs are rising faster than in any other state. The cost of PIP claims rose by one-third in New York, more than twice the percentage increase in Florida.
