Revealed – demographic showing alarming tolerance for insurance fraud
Revealed – demographic showing alarming tolerance for insurance fraud | Insurance Business America
Insurance News
Revealed – demographic showing alarming tolerance for insurance fraud
Results should “sound the alarm” for the industry
Insurance News
By
Mika Pangilinan
Americans aged 45 and younger are more likely to have a higher tolerance for insurance fraud, according to a new survey, with some even feeling envy towards those who commit it.
Published by Verisk and the Coalition Against Insurance Fraud, the survey found that 87-96% of older respondents consider it a crime, compared to only 75% of those under the age of 45. This percentage continued to decline with age, with only 64% of the youngest group stating the same.
Matthew Smith, executive director of the Coalition Against Insurance Fraud, expressed his concern over the findings and said it should “sound the alarm” for insurers, consumer activists, regulators, and legislators.
“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 Smith. “There is a need for consumer education on the harm insurance fraud crimes have on our economy and on every American citizen and family.”
Maroun Mourad, president of Verisk Claims Solutions, echoed these concerns and emphasized the need for insurers to remain vigilant in combating fraud.
“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,” said Mourad. “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 joint study also found that more than 36% of Americans believe it is acceptable to submit an inflated auto damage claim, while over 30% of those aged 25-34 said they “definitely would” submit a fraudulent property damage claim.
Moreover, 27% of individuals between the ages of 18-24 indicated they would commit workers’ compensation fraud, compared to less than 10% among those aged 45 and older.
Similarly, over a quarter of respondents aged 18-34 admitted to being “motivated” to commit insurance fraud, in contrast to less than 7% of those over the age of 45.
These results were garnered from the responses of over 1,500 insurance consumers who matched the demographic standards outlined in the 2020 US Census.
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