3 Types of Insurance Premium Fraud and How to Detect it

3 Types of Insurance Premium Fraud and How to Detect it

The Federal Bureau of Investigation (FBI) estimates insurance fraud to cost in excess of $40 billion each year, with premium diversion at the top of the list. Premium Fraud is the willful misrepresentation of information with the intent of paying less than the appropriate premium for an insurance policy or insurance coverage.

“There are always companies and individuals trying to manipulate the system to save money on insurance,” said Dr. Rick Palmer, DBA, MBA, APA, Audit Specialist, Afirm, a premier provider of premium audits, inspections and risk solutions. “Fraud is committed with the intention of saving premium and can take several different forms…