Insurance Fraud Continues, Despite Efforts

Insurers of all sizes consider fraud "a serious problem," according to a survey conducted by the Insurance Research Council, Malvern, Pa. More than one-third of insurers believe that the amount of fraud has increased over the past three years, in contrast to 6% who believe it has decreased. All companies in the study actively fight fraud, with 82% of respondents indicating their companies have formal fraud-fighting programs. More than 40% of insurers surveyed report spending more to fight fraud during the last three years, as opposed to 3% who are spending less.