Fraud has continually been considered the "kryptonite" to the insurance industry. From the beginning of time, fraud has existed when dealing with any kind of insurance. Whether it be the act of the consumer or the fault of the company, insurance fraud bears a serious concern as well as a cumbersome cost. Generally in the United States, fraud can cost nationally tens of billions of dollars annually. Prevalent in health care, the auto industry, and much more, whenever insurance is involved fraud tends to tag along. Crimes can range from individuals pretending to lose valuables and seeking a restitution to business owners burning down their own buildings just so that they can receive money from the insurance company. Insurance fraud has evolved into a rampant crime throughout the years.
As time progressed so has technology in an effort to combat and aneilate fraud. Software has come into creation that allows insurance companies to detect fraud from the beginning stages. System-analysis programs have enabled firms to manage fraud by overseeing client's accounts electronically rather than manually. However, these innovate technologies can cost millions and sometimes even billions of dollars to introduce into the insurance company. Does cost play that large of a role in deciding whether to prevent fraud or should the company disregard the cost and do what is best for the company? With the conjoined effort of insurance and technology companies, fraud can gradually be eliminated for the most part.
Background Information:
http://www.naic.org/documents/consumer_alert_beware_insurance_fraud.htm
http://ezinearticles.com/?The-Hidden-Cost-of-Insurance-Fraud&id=333341
http://www.insurancefraud.org/
Supporting Viewpoints
http://advice.cio.com/sandy_carter/soa_a_policy_for_preventing_insurance_fraud
http://www.iso.com/Research-and-Analyses/ISO-Review/Technology-Advancements-to-Fight-Insurance-Fraud.html
Real Life Examples:
http://www.irs.gov/compliance/enforcement/article/0,,id=174638,00.html
http://www.financial-ombudsman.org.uk/publications/ombudsman-news/21/insurance-fraud.htm
Advancements in the Industry:
http://proquest.umi.com/pqdweb?index=4&did=860040971&SrchMode=1&sid=1&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1269366952&clientId=20176
http://proquest.umi.com/pqdweb?index=3&did=889341331&SrchMode=1&sid=1&Fmt=4&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1269366952&clientId=20176
http://www.iso.com/Research-and-Analyses/ISO-Review/Technology-Advancements-to-Fight-Insurance-Fraud.html
http://www.insurancefraud.org/
