Fraud has long been a significant problem for the insurance industry — actually since the very beginning of insurance at Lloyd's coffee house.
The Coalition Against Insurance Fraud indicates that 5-10 percent of claims costs are related to fraud, with over 30 percent of insurers reporting as much as 20 percent of claims costs being related to fraud.
Fraud is a lucrative business for fraudsters, and perpetrating fraud becomes more creative every day. I'm pretty certain that most heads of Special Investigations Units (SIU) feel that "fraudster" should be a job category within the Department of Labor … the focus on committing fraud is so relentless by some, it is almost a profession!
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