Article published by: InsuranceBusinessMag.com
The insurance market was set to hit new highs in 2020. Then COVID-19 happened. That forecast – and the global economic outlook – is now far less certain. But while market growth projections are in a state of flux, the rate of fraud isn’t expected to slow down. Insurance fraud is anticipated to cause anywhere from $80 million to $100 billion in lost revenue this year.
Fraud is sometimes seen as a victimless crime, but it isn’t. It can fund organized criminal activity, it’s often a central vehicle for money launderers, and its proceeds are even used to fuel terrorism. As insurers seek to combat fraud, there are five key trends they need to keep in mind.