Insurance fraud costs the insurance industry $309 bn annually

The Coalition Against Insurance Fraud has released a report estimating that annually, insurance fraud costs the $308.6 billion. In 1995 this number at $80 billion.

The report addresses all lines of insurance and is also adjusted for inflation, unlike the one in 1995 (did not account for new forms of cyber insurance fraud that are impacting the US currently).

Applying an inflation calculator alone increases the $80 billion figure to $155 billion.

Meanwhile, the remaining additional $156 billion in estimated insurance fraud includes additional lines of insurance, notably healthcare, workers compensation, and life & disability insurance.

The actual cost of insurance fraud on American citizens is impossible to measure accurately, noting that the report seeks to use the best available data and resources to estimate the economic damage insurance fraud causes every year in the US.

The team of PhD candidates at CSU compiled data from the most reliable sources available for each line of insurance.

by Nataly Kramer