ODI: New Report Reveals Cost of Insurance Fraud
Written by WKTN Staff on December 2, 2022
The Economic Impact of Insurance Fraud by Judith L. French, Director
Insurance fraud is one of the costliest forms of fraud crimes in the United States and globally.
A new report from the Coalition Against Insurance Fraud estimates that the economic impact of insurance fraud is a $308.6 billion annual cost to U.S. consumers and businesses, equaling about $932 annually for every American and more than $70,000 over a person’s lifetime.
The mission of the Ohio Department of Insurance is to serve and protect Ohio insurance consumers. This includes a significant prioritization of investigating, taking administrative action, and assisting in the prosecution of insurance fraud and insurance professional misconduct because insurance wrongdoing drives up the cost of insurance for all Ohioans.
Our investigators partner with investigators from insurance companies, government entities, law enforcement agencies, and prosecutors to take action against those who commit insurance fraud or engage in crimes associated with insurance.
The Ohio Department of Insurance, from July 1, 2021, to June 30, 2022, received more than 7,433 allegations of insurance fraud and insurance agent misconduct from insurance companies, consumers, government agencies, and law enforcement entities. As a result, the department opened 1,116 administrative and criminal investigations, identified 132 potential law violations, and took administrative and/or criminal action against 162 individuals. .
The negative impacts of insurance fraud and insurance professional misconduct are far-reaching and the consequences of committing wrongdoing are severe, including legal fees, fines, jail time, and personal and professional shame.
Join us in the fight against insurance wrongdoing. I encourage anyone who suspects or is aware of insurance fraud and insurance professional misconduct to report it to the department at 800-686-1527 or on our website: https://insurance.ohio.gov/