Fraud not only impacts an insurance company’s bottom line, but the unnecessary payouts could create a financial burden on insurers. According to recent FBI statistics, non-health insurance fraud is estimated to cost the insurance industry more than $40 billion a year. Such costs equate to a $400-$700 increase in annual premiums for the average American family.
Markel’s Special Investigations Unit (SIU) is committed to fighting fraud to protect our customers. Our dedicated team of investigators and analysts has extensive law enforcement and insurance experience and uses its resources to conduct in-depth, thorough investigations. The SIU collaborates with local, state, and federal law enforcement to detect, mitigate, and prevent insurance fraud.
What is considered fraud?
Fraud is the intent to deceive, misrepresent, or conceal something in order to receive something of value, like money or gifts. In terms of insurance fraud, common schemes may include:
- Providing false information on an insurance application to get insurance that a person or business would not be able to normally meet underwriting guidelines.
- Inflating the cost of property damaged or lost associated with a claims submission.
- Giving false information in support of a claim.
- A medical provider billing for services not rendered or other irregular billing practices.
- Working while receiving workers’ compensation insurance benefits.
- Lying about a slip, trip, or fall on an insured business property.
- Burning down a home or business property due to financial stress.
- Exaggerating the severity of an injury.