NU Online News Service, June 28, 2:05 p.m. EDT
The good news is a fraud task force set up by the National Insurance Crime Bureau (NICB) in South Florida in 2002 seems to have had an effect on automobile insurance fraud.
The bad news is criminals appear to have moved north within the state.
A 290 percent increase in questionable claims related to staged auto accidents was recorded in the Tampa, Fla., area from 2008 to 2009, according to a new report from the NICB.
Criminals are "fleeing the heat" in South Florida due to efforts of the NICB and its members, said Joe Wehrle, NICB president and chief executive officer.
"That's one of the reasons [criminals] are moving up the state to the Tampa and Orlando areas," said Mr. Wehrle, who added that the NICB will be setting up a task force in Tampa.
Questionable claims related to suspected staged accidents reported to the NICB from member companies increased 58 percent from Jan. 1, 2008 to Dec. 31, 2009. The number of questionable claims for all fraud types in Florida increased 15 percent, according to the NICB.
Criminals are taking advantage of Florida's no-fault insurance laws, the NICB said. Previous studies showed Florida had the highest rates of fraud in bodily injury and personal injury protection (PIP) among a dozen states with no-fault laws, the NICB said.
From 2008 through 2009 questionable claims in Florida for bodily injury increased 73 percent and PIP rose 52 percent.
The NICB also said while the economy could not directly be tied to the rise in staged accidents, it may be easier to find "more willing participants looking for a way to make some quick cash."
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