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 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.