Survey finds more than a third of Americans say it's acceptable to inflate insurance claims |
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Written by U.S. Insurance News
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Monday, 28 July 2003 |
One in three U.S. adults — 33 percent — say it is all right to exaggerate insurance claims under certain circumstances, according to a recent Insurance Research Council survey. These respondents agreed that it is acceptable to increase the amount of an insurance claim by a small amount to make up for a deductible. Just over one in five respondents (22 percent) agreed it is acceptable to increase the amount of a claim to make up for insurance premiums paid when no claims were made. In contrast, fewer respondents tolerated dishonesty in areas other than insurance, such as exaggerating income or experience in a job interview or withholding information on a loan application or from the IRS.
MALVERN, Pa. — One in three U.S. adults — 33 percent — say it is all right to exaggerate insurance claims under certain circumstances, according to a recent Insurance Research Council survey. These respondents agreed that it is acceptable to increase the amount of an insurance claim by a small amount to make up for a deductible.
Just over one in five respondents (22 percent) agreed it is acceptable to increase the amount of a claim to make up for insurance premiums paid when no claims were made. In contrast, fewer respondents tolerated dishonesty in areas other than insurance, such as exaggerating income or experience in a job interview or withholding information on a loan application or from the IRS.
The IRC has been monitoring public attitudes toward claim padding and other forms of insurance fraud for more than a decade. The 2002 results show acceptance of claim padding and buildup has been declining steadily since 1997, when acceptance levels peaked. In addition, the 2002 study found that tolerance for specific examples of application and claim fraud dropped considerably since they were last measured in 1991.
"Despite the fact that many Americans continue to tolerate opportunistic fraud such as claim padding, the survey results are encouraging,” said Elizabeth A. Sprinkel, senior vice president at IRC. “They suggest that, compared to previous years, the public is becoming less tolerant of all forms of insurance fraud. In addition, the data suggest that Americans are becoming increasingly concerned about the impact of insurance fraud on the cost and availability of insurance. They are also more willing to support strict measures to prevent and prosecute fraud.”
Seventy-eight percent indicated they were very or somewhat concerned about the issues of auto insurance fraud in their state. More than nine out of 10 respondents (92 percent) agreed that "insurance fraud leads to higher rates for everyone" and that "persons who commit insurance fraud should be prosecuted to the fullest extent of the law."
Most respondents indicated they would be willing to perform specific actions that would help insurers and law enforcement identify and reduce dishonest auto insurance claims. In addition, respondents increasingly favored prosecution and a jail term for individuals caught committing insurance fraud. However, only 4 percent of respondents countrywide said that they, personally, have reported someone for committing insurance fraud.
The National Insurance Crime Bureau estimates that fraud against property-casualty insurers costs Americans $30 billion per year, which translates into an extra $200-$300 per year per household for insurance premiums.
"Public opinion is a key weapon in the battle against insurance fraud," Sprinkel said. "As the public becomes more aware of the enormous costs associated with these crimes and less tolerant of fraud and the people who commit fraud, we see increased support for tougher anti-fraud efforts."
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