Insurance Fraud

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Insurance Fraud Insurance fraud occurs when an insurance company, agent, adjuster or consumer commits a deliberate deception in order to obtain an illegitimate gain. It can occur during the process of buying, using, selling, or underwriting insurance. An act is completed by Simply making a misrepresentation (written or oral) to an insurer with knowledge that is untrue is sufficient. The majority of insurance fraud cases involve exaggerated or false claims and money laundering. Example fraudster file insurance claims for accidents that never actually occurred. Or owners of life insurance policies have feigned their own deaths in order for their families to collect on the policy. Then, the fraudster receives money from the family while secluded in a remote or foreign location. Remember as a customer you can not exploit financial gain from an insurance policy due to the principle of indemnity. Indemnity simply means putting you or your property back in the position you/it use to be before the happening of an event. Recent history suggests that recession leads to a 25% increase in fraudulent claims in both commercial and personal lines as cash-strapped as customers look for ways to supplement their income and turn their actual, or imagined, assets into cash. This 25% figure is based on experience from the last two recessions (2010/11 and the late 90s), analysis of past and present Crime data, and the insurance market's own historical claims records. The pervasiveness of insurance fraud drives up costs for all consumers and costs the insurance industry billions of dollars each year. Information about Insurance Fraud can be reported to a Fraud Bureaus or insurance companies. Insurance fraud may fall into different categories from individuals committing fraud against consumers to individuals committing fraud against insurance companies. Fraud not only inflicts extra costs on insurance companies, but it also financially impacts consumers and businesses. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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