With the wide spread of insurancefraud, you might start asking if there is assurance in your life plans. Theinsurance industry already has positioned itself in the modern world as anecessity and it will continue to hold its stand. All over the world, there arereports of insurance frauds and scams and insurance and reinsurance companieshave set up their own investigation team on the alarming increase of scammers.
In America, insurance is always indemand since people and business are always looking for ways to minimize hazardfees. Because of the level of insurance concentrated in Urban Centers,insurance companies have set up ways to investigate each claim for its validityand legitimacy. In 1993, insurance fraud investigators to stage several buscrashes in New Jersey. All of the passengers inside the buses wereinvestigators. After the crash, they receive claims from people who jumped intothe accident or just merely passed by, stating that they have been hit orinjured. Because of this, the Coalition against Insurance Fraud was created.They have put out warnings to the public as well as to different insurancecompanies on the different schemes and possible ways of earning money byscammers. Both state and federal laws prohibit both soft and hard insurancefraud in the US. The practice has been recognized as a serious crime and afavorite scheme for organized crime, and has, as a result, criminalizedinsurance fraud.
United Kingdom has their own ways toeliminate insurance fraud acts. They also have their own insurance fraud agentsfrom City of London Police to t heir Insurance Fraud Bureau. The biggestpercentage of scams came from car insurance. The number of dishonest motorclaims rose by 34% to 59,900, attempting to cheat the industry out of £811m, asreported by BBC in May, 2014.
Insurance fraud figures are highest inthe areas with higher insurance penetration, reflected in the global marketbreakdown, with Europe accounting for 35.9 percent of the global insurancemarket in 2011, North America 28.9 percent, and Asia 28.2 percent, according toSwiss Re in 2012. The Middle East and Central Asia by comparison accounts for0.9 percent of global share, Africa 1.5 percent and Latin America 3.4 percent.While regions like the Middle East have a way to go, and the Asia markets arein general bringing systems up to speed to tackle rising fraud, more advancedinsurance markets are moving ahead. Cities such as Jakarta, Indonesia,Cambodia, Singapore and India