How You Can Fight Life Insurance Fraud
American Family Life Insurance has a whole section on their website dedicated to fighting insurance fraud. This shows how important it is to limit that amount of money being lost because of auto, home and life insurance fraud. According to their website, the Insurance Information Institute cites that the financial impact of insurance fraud is around $30 billion per year. Something needs to be done to drop this astounding figure.
American Family encourages the consumer to help insurers fight fraud. Not only should you educate yourself on the basics of what constitutes fraud, but you should report any suspicious activity you witness or hear about. Insurance fraud can range from normally honest people giving incorrect information on a claim, to fraud rings making insurance fraud their business. Regardless of the severity, insurance fraud is wrong and working together insurers can limit the abuse to keep life insurance quotes from soaring.
The Insurance Information Institute reports how serious insurance fraud really is. About one out of every ten property & casualty insurance claims involve some level of fraud. Because of this fraud the average American household is paying an extra $200-$300 per year in insurance premiums based on a report from the National Insurance Crime Bureau. The bureau also notes that insurance fraud is the 2nd most expensive white-collar crime happening in the United States.
Life insurance companies encourage their customers to stop fraud from happening in the first place. The American Family website offers a phone number to call with any information on insurance fraud, as well as an email address. You can also contact the National Insurance Crime Bureau through phone or text. You may think your report won't mean much in the end, but if we can stop even a portion of fraud from happening we could see insurance rates level out or possibly decrease over time.