Insurance Fraud

In the United States, the Coalition Against Insurance Fraud estimated that, in 2006, about $80 billion was lost in the United States due to insurance fraud.

The United States Fire Administration claims there were approximately 31,000 fires caused in the US by arson in 2006, resulting in losses of $755 million.

According to estimates by the Insurance Information Institute, insurance fraud accounts for 10%, or about $30 billion, of losses in the property and casualty insurance industries in the United States. The National Health Care Anti-Fraud Association estimates that 3% of the health care industry's expenditures in the United States are due to fraudulent activities, amounting to a cost of about $51 billion.

The Insurance Bureau of Canada estimates that personal injury fraud in Canada costs about C$500 million annually.

In the United Kingdom, the Insurance Fraud Bureau estimates that the loss due to insurance fraud in the UK is about £1.9 billion. They believe that as a result of this insurance fraud, an average of £44 is added each year to the annual costs individual policyholders face.

In Australia it is believed that more than 10% of insurance claims are fraudulent. Based on that estimate, and the fact that billions of dollars are paid out to settle insurance claims each year, insurance fraud in Australia is huge.

While early detection systems are utilised by most reputable insurance companies, the level of insurance fraud worldwide is still extremely high, and possibly a result of well organized and powerful fraud rings.

Investigator is essential when detection systems fail. Massive amounts of data can be captured and analysed. Common elements among multiple claims can be identified quickly and easily. Links between people and places and events can give clues to possible fraudulent activity. Visualization of these links is simple and powerful, and fully integrated with the real time investigation management system.