A New York agent's association said it has been alerted to an "alarming' trend, by a fraud investigator who told the group that insurance claims are on the rise in the state.
The observation came during an address to the Professional Insurance Agents of New York State Inc's Long Island Regional Awareness Program held earlier this week.
New York Automobile Insurance Plan Special Investigations Unit Manager Jack Houston said fraud is on the increase for the first time since 2005 and in New York alone there were more than 23,000 referrals last year, PIA New York reported.
PIA said Mr. Houston added that the property-casualty industry throughout the country experienced losses of more than an estimated $30 billion due to fraud.
One reason he gave for the increase was the poor economy, demonstrated by an increase in arson in order to get insurance payouts.
However, Mr. Houston advised prosecutions of insurance fraud across the country are also on the increase. He mentioned that the ability to detect fraud with the utilization of technology and special investigative units is also helping to fight this crime.
PIA said Mr. Houston asked agents to watch and report suspected cases of fraud and also to advise clients to avoid fraud activity.
The association said that during the meeting Andrew E. Meehan, resident senior vice president of Utica National Insurance Group, was honored as this year's recipient of the Industry Professional of the Year award.
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