Assessing the Impact of Communication between Law Enforcement and Insurance Companies on the Costs of Homeowners and Auto Insurance.

摘要

nsurance fraud is on the rise in the US, costing insurance companies many millions of dollars per year, with most of the added costs passed on to consumers in the form of higher premiums. Extant research has identified a number of different reasons for the rise in insurance fraud, including the fact that up to one third of the general public perceive fraud a justifiable response to rising insurance costs. In addition, insurance companies may be lax in pursuing all but the most egregious cases of fraud for various corporate reasons, while law enforcement tends to place a low priority on the prosecution of insurance fraud. Fraud occurs when false or incorrect information is provided to obtain something of value, but appears to be particularly problematic in auto and homeowners insurance. It is estimated that at least one tenth of all claims in auto and homeowners insurance are fraudulent, leading to added costs for insurance companies, amounting to