Factors Accountable for Insurance Frauds
The global insurance industry has been under severe threat from the fraudulent activities of Con Artists in the recent times. It has become all the more important to weigh & determine the origination & cause of such activities before it takes a heavier toll upon the various financial procedures & capital investments associated with the insurance processes.
Threats to the Global Insurance Industry
A Computer Savvy Generation:
It could be easily perceived that today’s computer savvy generation would be attracted towards applying & buying things online. This process doesn’t necessarily invite a deep scrutiny of the nature and existence of such businesses. Hence they are more fraud-prone. The companies or insurance firms that they deal with are not always traceable.
Insurance Scams Involving Immigrants:
The diversity of ethnic population in the US being on the rise, it would help towards insurance crimes being conducted involving more of such communities. The inability to understand the legal loopholes within a policy and the lack of adequate English communication skills would surely make the situation worse for them.
Senior Citizens To Fall Preys:
A large section of the senior citizens being hearing impaired or with poor vision fall prey to the Con artists due to their inability to follow the policy agreement clauses properly. That is the reason more and more of them are investing at fake promissory notes & bogus viaticals which are being guaranteed by fraudulent & virtual insurance companies.
The main factors which contribute towards the growing number of fraud cases in the Global Insurance Industry can be summarized as follows:-
Easy Prey Health Care System:
The US Health-care System is large and fictile. Apart from the innumerable patients and treatments it also has a pretty complex billing system. This gives the Con Artists an opportunity to try out their skills at robbing the industry of its wealth. In the recent times a lot of eminent doctors and health firms have also started cheating on the consumers and insurers in order to fill up their targets.
Insurers Back-Off:
Usually all the companies would protest against frauds but now it has almost become customary for some big companies to expend towards the smaller suspect claims. They are focused on saving their time and the hazard of fighting a small claim. They would also look at it as an opportunity to add to their goodwill as a quick payer and a proactive service provider.
Immigrants Are An Easy Prey:
America has a growing population of Asian and Hispanic immigrants who are prone to falling as preys to the Insurance Con Artists. A lack of insurance knowledge and incompatibility to comprehend in English invites a lot of problems for these groups.
Frauds Offer Less Risks:
Insurance Frauds appear to be quite lower-risk crimes to the Con Artists as compared to the more complex crimes eg. Burglary and Drug trafficking. Now-a-days it also offers higher rewards than many armed robberies.
Improper Fraud Laws:
Prosecutors across the US find it real hard to cope with legal cases associated with insurance frauds. This has happened across a large number of states and has established the fact that insurance laws are not at all equipped to counter frauds. Across 6 states in the US there are no laws to guide the increasing volume of insurers and consumers across the Global Insurance Industry.
People Tolerate Frauds:
People are often found guilty of tolerance. This has happened since the past few years to the extent that a popular belief has developed in the minds of people. They say that the insurance industry is to be blamed for all the fraudulent activities associated with it in the recent times. This has happened as a result of a large number consumers losing faith on their insurers.
It is only through conducting a careful study of the above mentioned factors that we may think of curbing insurance frauds to a larger extent & thus ensure social security for all citizens.
Arindam Sen is a website content developer associated with a website development concern in India. He is currently involved in content-development for an insurance community website as well as his SEO blog. You may wish to pay a visit to his personal blog: http://blogospheretips.wordpress.com