What is Insurance Fraud

What is Insurance Fraud

Insurance fraud might not be something you think about all the time, but it has an effect on you and your family every single day. According to Law Enforcement and Insurance Fraud Professionals insurance fraud (excluding health care insurance fraud) increases insurance costs by more than $40 billion each year. Including healthcare insurance fraud, that number increases to at least $80 billion, with some estimates at double or even triple that figure.

Of course, insurance companies must account for the cost of fraud when determining insurance premiums. This means the costs of insurance fraud are ultimately passed onto consumers through higher insurance premiums. Far from being a “victimless crime”, insurance fraud hurts friends, family, and everyone else who relies on insurance for the personal and financial safety of themselves and their loved ones.

In fact, various agencies report that the annual cost of insurance fraud can be $700 or more per family. Even worse, there are indications that high levels of insurance fraud can drive costs up so much that some businesses move out of New York altogether (or consider doing so, at the very least).

The bottom line is this: Insurance fraud is a felony that affects not just the insurance companies, but every resident of New York through increased insurance premiums, higher prices for goods and services and a weaker overall economy.

What is FraudNY?

With so much at stake, insurance companies in New York have joined together with the goal of educating the public about insurance fraud. By increasing awareness of the risks and costs associated with insurance fraud, the hope is that the combined resources of these insurance companies can greatly reduce fraud in New York.

FraudNY is the web presence of The New York Alliance Against Insurance Fraud (NYAAIF). This organization was founded by a coalition of more than 100 New York insurance companies in 1999 as a way to pool resources and maximize the effectiveness of outreach efforts. The organization has several primary goals, which include the following:

  • Increase the public’s awareness of insurance fraud.
  • Educate the public about the true cost of insurance fraud for all residents of New York.
  • Decrease the public’s tolerance of insurance fraud.
  • Increase reporting of insurance fraud.
  • Decrease incidents of insurance fraud in New York and the country overall.

NYAAIF accomplishes its outreach and public awareness objectives using a variety of traditional methods. In addition to television and radio advertisements, NYAAIF has sponsored informational brochures, outdoor billboards, mobile billboards, and many events throughout the State. All of this is done to protect New Yorkers from becoming the victims of this costly crime, the crime you pay for.

If you’d like to learn more information about fighting insurance fraud, please call us at (844)-372-8369 or watch the introduction video located here.