CBS' new crime drama, Numb3rs, shows a math whiz helping hisdetective brother fight crime. I wonder how the guy would dofighting insurance fraud?

Fraud exacts a financial toll that raises the coverage tab forall risk managers. The insurance industry estimates that insurancefraud represents 10 to 15 percent of each premium dollar. Othersestimate insurance fraud's annual cost at $18 billion. When we say“industry” here, though, do not assume that it is just theinsurance industry that is paying the bill. Who do you thinkultimately shoulders the added insurance tab for fraud?

A recent study by the Insurance Research Council calculates thatfraud and buildup added between $4.3 and $5.8 billion to autoinjury settlements in 2002, representing between 11 and 15 percentof all dollars paid for private passenger auto injury insuranceclaims in that year. In 2002, the IRC found the appearance of fraud(misrepresenting key facts in a claim) in almost one in 10 paidbodily injury liability claims and one in 20 paid personal injuryprotection claims.

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