Risk & Business

Image by Getty Images via Daylife According to an industry source, the souring economy has brought a rise in suspicious claims. The National Insurance Crime Bureau said 41,619 suspicious claims were reported to the organization by member insurance companies, who reported claims based on property, casualty , commercial and vehicle policies. As has often happened in the past, when income goes south, questionable/suspicious claims increase. A word to the wise, insurance companies are aggresively investigating any and all claims that pop up on their radar . Worth remembering that a dip in income overall also leads to a dip in income for insurance companies. In order for them to preserve sufficient surplus to pay out on valid claims they tend to keep a sharper eye out for fraudulent activity during economic downturns.

The National Insurance Crime Bureau (NICB) has reported the amount of suspicious insurance claims has risen this year 13%. Suspicous car fires, auto glass claims,and product liability claims are up 20%,76% & 90% respectively. Also double billings on work comp claims have also increased. What is going on? Well I think it has to be recession and economy related. As a business owner , part of your risk managment thought process has to take into consideration your vunerability to insurance fraud . As money gets tighter people look to insurance claims as a way to get income. It is hard to catch and prosecute insurance fraud , so be aware. Your risk planning should include being more engaged in your claims with the insurance adjusters. Try questioning everything and everybody that you may know that is invovled with the claim. Keep your ear to the ground and report any suspicious issues. It will take a team to catch fraud committed against you and your business. Until next time,...