Copyright held by The John Cooke Fraud Report. Reprint rights are granted with attribution to The John Cooke Fraud Report with a link to this website.
(From long time friend Bob, an SIU-er from Minnesota and a really smart guy. Shared in JCFR with permission of the writer.)
I just finished reading the 12/27/12 ForeCAST REPORT published by NICB regarding Organized Group Activity in Insurance Fraud: 2008 – June 2012. As a two decade resident and worker in the Great State of Minnesota, I think we got an unfair rap on the knuckles when it was pointed out that there was a 231% increase in organized crime frauds. Quite the dubious honor, isn’t it?
I commend the author for her work compiling the available data, however the nationwide file referral numbers (13,014 questionable claims reported in 54 months = 241 claims per month) were so numerically insignificant in relation to the actual number of US suspected fraud cases that any conclusions are premature and probably dead wrong.
I noticed that Montana and Wyoming had no referrals at all. If just one adjuster had done the paperwork necessary to participate in the NICB Questionable Claims Study, the headline of the report might well have been MONTANA EXPERIENCES 1000% INCREASE IN ORGANIZED CRIME DRIVEN FRAUD.
By the same token, the Consumer Sentinel Network rates Montana (23rd) and Wyoming (27th) far above Minnesota (41st) on a 50-state fraud reporting comparison study of 1.3 million cases. Why such blatant disparity?
Seeing the local headline shout MINNESOTA LEADS NATION IN RISE IN ORGANIZED AUTO INSURANCE FRAUD was disturbing given that we work hard here in The Land of 10,000 Lakes; however, SIUs are restrained by lack of resources, budgetary limitations, inadequate laws, not enough prosecutors, laughably light sentencing guidelines, and all of those other things that every state and every adjuster faces.
I would be very interested in seeing the results of an audit-based report compared to this voluntary reporting NICB paper. You wouldn’t be interested in reviewing 10,000 national files, one for each of our lakes, would you? Somebody needs to clear our name, but I’m so busy trying to close 105 lines of coverage for every 100 opened, there’s no time left in my day. You, on the other hand, have nothing else to do with your time, so how about it?
My response to Bob was just two words. “Bite me.”
(I did go read the report, though, and he’s got a valid point. Lay off Minn-uh-zoh-tuh, guys.) LK