Prompted by the investigations into corrupt insurance industry practices and accounting irregularities exposed by New York Attorney General Eliot Spitzer and other regulatory authorities, the Federal Bureau of Investigation has decided to probe whether these problems are endemic to the business.

At the same time, an FBI staff official in Washington said it would be inappropriate to say that American International Group–the most prominent focus these days of Mr. Spitzer, the New York Insurance Department and the U.S. Securities and Exchange Commission–is the target of the FBI inquiry.

The comments implied that while the probe of AIG is the current headline, prior investigations by Mr. Spitzer into contingency fees paid to property-casualty brokers to reward bid-rigging and steering of commercial insurance accounts could also be examined by the FBI.

“We're looking at the types of allegations made by the attorney general's office in New York to see if there is any trend in the industry,” the staff official said.

However, the FBI spokesman sought to remove what he characterized as some “confusion” regarding the bureau's investigation and its focus. “A lot of people ran with the idea that AIG is being investigated,” he said, but this is not the case. In fact, he said, the scope of the probe is industrywide, and it is not aimed at any particular company. “There is no specific investigation,” he emphasized.

Earlier, a spokesman for AIG said he knew of no inquiries or subpoenas by the FBI targeted at his company.

The AIG representative, Chris Winans, said he could not comment on the merits of the FBI's latest review. He said, however, that, “in general, we welcome any constructive effort aimed at improving the environment of the insurance industry.”

He added that “AIG is cooperating with government authorities to the fullest extent possible, and that would include state, federal and regulatory authorities.”

In a report issued at the same time the FBI investigation was disclosed, the agency said fraud perpetrated within the industry is a major concern.

Indeed, the bureau said its review of the industry is focused on insurance-related corporate fraud, “the diversion of policyholder premiums for the personal benefit of agents and brokers, and workers' compensation frauds that target pools of small businesses.”

The agency said it is looking into the insurance industry because of its size and importance to the U.S. economy.

“The insurance industry consists of more than 7,000 companies with over $1 trillion in premiums each year,” the FBI report said. “This is coupled with the direct link to rising insurance costs.”

Insurance fraud for non-health coverages “costs the average family between $400 and $700 per year, with a total cost exceeding $40 billion,” according to the FBI report.

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“We're looking at the types of allegations made by the attorney general's office in New York to see if there is any trend in the industry,” said an FBI spokesman.