Industry News
Disaster Claims Fraud Cost Insurers as Much as $9.2B in 2021
Fraud adds 5%-10% to the total claims paid following a disaster, according to the NICB.
In 2021, property & casualty insurers paid an additional $4.6 billion-$9.2 billion in disaster claims as a result of fraud, according to the National Insurance Crime Bureau (NICB).
The NICB estimates fraud adds 5%-10% to the overall amount in claims paid after a disaster. The FBI found similar results when looking at reconstruction costs following Hurricane Katrina: Of the $80 billion in government funding to aid rebuilding efforts, insurance fraud accounted for $6 billion, or about 7.5%.
This premium content is locked for
Insurance Coverage Law Center subscribers only.
Enjoy unlimited access to the single source of objective legal analysis, practical insights, and news for the insurance industry.
- Access the most current expert analysis and daily developments across jurisdictions
- Solve complex research issues with expert tools and intelligence
- Tap into insurance coverage expert guidance
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].
Copyright © 2024 ALM Global, LLC. All Rights Reserved.