Fraud Referrals Up 12%; Biggest Jumps in Auto Glass, Towing

NU Online News Service

The National Insurance Crime Bureau (NICB) said referrals from member companies to investigate questionable claims through the third quarter were up 12 percent compared to last year.

Leading the uptick was a 511 percent increase in referrals about auto glass fraud and a doubling of referrals about questionable inflated towing bills and storage, the NICB said.

Joe Wehrle, president and chief executive officer of NICB, said fraudsters are choosing states like Florida and New York, "where no-fault insurance provides a fertile environment for auto-related personal injury protection scams."

The category with the largest amount of referrals thus far this year was questionable auto thefts, with 9,220 referrals. But that number is down 11 percent from last year, according to the report.

For the second year, referrals for questionable hail damage claims saw the largest jump under the property referral category with an 84 percent increase. Property referrals were up 15 percent overall this year over the last.

Inflated medical billing appears to be a big reason for questionable claim referral in workers' compensation and casualty. The referral reason saw the largest increase (31 percent) in workers' comp and a 29 percent jump in casualty. The top gainer in casualty was excessive treatment at 33 percent. The most referrals in casualty were due to suspected faked or exaggerated injuries, with more than 11,000, a 17 percent increase over last year.

Comments

Resource Center

View All »

Is It Time To Step Up And Own An Agency?

Download this eBook for insight on how to determine if owning an agency is right...

Claims - The Good The Bad And The Ugly

Fraudulent claims cost the industry and the public thousands of dollars in losses. This article...

Leveraging BI for Improved Claims Performance and Results

If claims organizations do not avail themselves of the latest business intelligence (BI) tools, they...

Top 10 Legal Requirements for E-Signatures in Insurance

Want to make sure you’ve covered all your bases when adopting e-signatures? Learn how to...

Get $100 in leads with $0 down!

NetQuote's detailed, real-time leads have boosted sales for thousands of successful local agents across the...

The Growing Role of Excess & Surplus Lines in Today’s...

The excess and surplus market (E&S) provides coverage when standard insurance carriers cannot or will...

Increase Sales Conversion with this Complimentary White Paper

This whitepaper will share proven techniques - used by many of the industry's top producers...

D&O Policy Definitions: Don't Overlook These Critical Terms

Unlike other forms of insurance where standard policy language prevails, with D&O policies, even seemingly...

Environmental Risk: Lessons Learned from Willy Wonka and the Chocolate...

Whether it’s a chocolate factory or an industrial wastewater treatment facility, cleanup and impacts to...

More Data, Earlier: The Value of Incorporating Data and Analytics...

Incorporating more data earlier in claims lifecycles can help you reduce severity payments by 25%*...

Tech Digest eNewsletter

Technology related insights for insurance professionals including key developments, solution providers and news briefs from the carrier front – FREE. Sign Up Now!

Advertisement. Closing in 15 seconds.