A Surprisingly High Number of Americans Think Insurance Fraud Is Not a Crime, New Survey Shows
June 07 2023 - 9:00AM
A significant number of Americans aged 45 and younger show a high
level of tolerance for insurance fraud – even feeling envious of
those who commit it – according to a new survey of insurance
consumers by Verisk (Nasdaq: VRSK) and the Coalition Against
Insurance Fraud.
The study analyzes how American consumers view insurance fraud
and insurance crime and delves into the psychology of insurance
fraud to understand the motivations and justification for the crime
derived from in-depth interviews with those convicted of insurance
fraud.
“This study should sound the alarm for insurers, consumer
activists, regulators, and legislators on the state of fraud in
America. While it’s marginally reassuring that 84% of Americans in
the survey consider insurance fraud a crime, the 16% that do not
consider it a crime potentially represent more than 53 million
Americans,” said Matthew Smith, executive director of the Coalition
Against Insurance Fraud. “There is a need for consumer education on
the harm insurance fraud crimes have on our economy and on every
American citizen and family.”
The study found that 87-96% of older respondents consider
insurance fraud a crime, while only 75% of those under age 45
consider it a crime, with the percentage skewing downward by age to
only 64% for the youngest group.
Other findings include:
- More than 36% of all Americans believe it’s acceptable to
submit an inflated auto damage claim
- Over 30% of 25-34-year-olds “definitely would” submit a
fraudulent property damage claim
- 27% of those 18-24 would commit workers’ compensation fraud,
compared to less than 10% of those 45 and older
- Over a quarter of those 18-34 are “motivated” to commit
insurance fraud compared to less than 7% of those over 45
“The results prove the continued need for insurers to be
hypervigilant about the impact of fraud on their book of business,”
said Maroun Mourad, president of Verisk Claims Solutions. “The fact
that younger generations are more tolerant and motivated to commit
claims fraud indicates that this problem is not going away and is
likely to persist in the future. Carriers would be wise to set up a
strong perimeter defense to ensure they are adequately and
accurately detecting potential fraud throughout the policy life
cycle.”
The study, conducted by Dynata, collected more than 1,500
responses from a group of insurance-purchasing consumers matching
the demographic standards identified in the 2020 U.S. Census. Learn
more about the results of the study at a webinar on July 18.
About Verisk Verisk (Nasdaq: VRSK) provides data-driven
analytic insights and solutions for the insurance industry. Through
advanced data analytics, software, scientific research and deep
industry knowledge, Verisk empowers customers to strengthen
operating efficiency, improve underwriting and claims outcomes,
combat fraud and make informed decisions about global issues,
including climate change and extreme events, as well as political
and ESG topics. With offices in more than 20 countries, Verisk
consistently earns certification by Great Place to
Work and fosters an inclusive culture where all team
members feel they belong. For more, visit Verisk.com and
the Verisk Newsroom.
About the Coalition Against Insurance Fraud
Insurance fraud is the crime we all pay for, costing consumers
more than $308.6B each year. Formed in 1993, the Coalition is the
nation’s only alliance uniting all groups against insurance
fraud. 280+ member organizations comprise the Coalition.
Consumers, insurers, government agencies, legislators, prosecutors,
and other committed partners come together under the Coalition
banner. We fight all forms of insurance scams regardless of who
commits the fraud. The power of our diversity and unity in
protecting consumers earns the Coalition unparalleled credibility.
The Coalition leads the fight against insurance fraud in our nation
and with our global partners. The Coalition is governed by
our Board of Directors and Executive Committee in
accordance with our By-Laws.
Media Contacts
Michelle Pantina
551-500-7327
michelle.pantina@verisk.com
Joseph Matos
202-250-3250
joseph@insurancefraud.org
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