Organized crime & insurance fraud
If you wonder why insurance fraud seems to be rampant in Florida, it could be because it’s organized—as in “organized crime.” This is no secret. If you look at The PIP Source produced by the state Division of Insurance Fraud, you’ll see many arrests for auto insurance fraud involve the same clinic, family members or occur on the same day. The National Insurance Crime Bureau (NICB) gives Florida its #1 ranking for having the most questionable claims, which are claims that raise red flags.
Florida has the highest rate of questionable claims per 100,000 residents, nearly twice as many as #2 ranked Michigan. The NICB says the vast majority of the suspicious claims involve automobile insurance. Florida’s problems with auto insurance fraud are a long-time concern. Our fair state is among those with a no-fault auto insurance system, and fraudsters know how to work it.
The NICB is a nonprofit organization that is devoted to prevent, detect and defeat insurance fraud. Insurance companies refer suspect claims to the NICB for further investigation, and the group then analyses the data it collects as part of its public awareness efforts.
The latest NICB report on organized crime and insurance fraud not only has Florida at the top of the list; two Florida cities are among the top five for investigation referrals—Miami and Tampa. That really means two things: Fraudsters like the big cities (that’s where the fraud victims are!) AND more law enforcement in major metros areas are focused on putting fraud perpetrators out of business. Here’s wishing the good guys continued success since this is a list we want to be off.