By: Stacey A. Giulianti, Esq.
Chief Legal Officer
Edison Insurance Company
November 13-19, 2022, is International Fraud Awareness Week. Practically every year, fraud against businesses and individuals increases. Companies lose at least 5% of their revenue annually to fraud. This fraud is paid back by consumers on every transaction – including your insurance premium. Property-casualty fraud robs insurers of more than $45 billion each year – ultimately from you, the policyholder. Insurance carriers pay out up to 10% of their claims cost on fraudulent claims annually. Fraud from all types of insurance companies costs approximately $300 billion each year. Insurance fraud comes in all shapes and sizes, most often by:
- Padding insurance claims or inflating a genuine claim
- Falsifying facts on an insurance application
- Submitting claims for damage or injuries which never happened, services never provided, or equipment never delivered
- Staging accidents
Arson – intentionally setting a fire on your own home or personal property – is rampant, and every year more than 250,000 staged fires occur in the United States. Almost half of US businesses are victims of fraud each year. There were 6 million reports of identity fraud last year.
Fraud is not a victimless crime. We pay for every act of dishonesty through increased retail prices, insurance premiums, and taxes.
Learn more by visiting the Coalition Against Insurance Fraud at https://insurancefraud.org/tools-resources/.
Repost this blog and let your friends and colleagues know fraud of any type is never acceptable. If you are aware of any fraud being committed against our company, report it to us at 866-923-2920. You can also report insurance fraud in Florida directly to the State, by visiting https://first.fldfs.com/.
We all have a responsibility to fight crime and fraud wherever it occurs. Help us stamp out fraud by reporting it.
Edison Insurance Company can assist by providing solutions and products which work for you and your home. Call your insurance agent or contact our Customer Service Department to discuss your options. Our promise – fast, fair, and friendly – is our motto, and we live by it. We appreciate your business and look forward to serving you.
Notice: Please check your specific policy and speak to your carrier, legal advisor, and/or licensed agent for more information. Policies differ, and revisions occur frequently. All information is general only.