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Fraud

Fraud is an important industry issue, which can have far-reaching consequences.

<p>Insurance fraud is illegal and a cost to our community and every policyholder.</p>


Insurance fraud

Insurance fraud is an illegal act in which a consumer lies to an insurer to gain a benefit.

Most insurance fraud occurs at claim time, through claims for

  • events/losses that didn’t happen
  • staged losses – for example, arson and vehicle theft
  • exaggerated claims

In addition, a large number of fraudulent claims occur for non-disclosure of information that insurers require, in order to match the correct premium to the risk.