Mexico Beach, Florida, United States October 26, 2018. 16 days after Hurricane Michael, Canal Park. Credit: Terry Kelly/ David Glawe, president and CEO of the NICB, said: “After most disasters, these shameful contractors use well-rehearsed, predatory practices to exploit stressed disaster victims when they are most vulnerable. As a result, survivors pay these bad actors who do little or no work.” (Credit: Terry Kelly/

In 2021, property & casualty insurers paid an additional $4.6 billion-$9.2 billion in disaster claims as a result of fraud, according to the National Insurance Crime Bureau (NICB).

The NICB estimates fraud adds 5%-10% to the overall amount in claims paid after a disaster. The FBI found similar results when looking at reconstruction costs following Hurricane Katrina: Of the $80 billion in government funding to aid rebuilding efforts, insurance fraud accounted for $6 billion, or about 7.5%.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Steve Hallo

Steve Hallo is managing editor of He can be reached at [email protected].  

More from this author



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including, and
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.