I noticed an article right this moment in Insurance coverage Journal that was fascinating to me as an insurance coverage skilled within the nice state of Florida. The article mentioned a case on insurance coverage fraud in Florida associated to Hurricane Irma.
Florida Catastrophe Fraud Crew Investigation Results in False Declare Arrest
A Florida man is arrested for insurance coverage fraud over a $225 declare for injury to his automobile associated to Hurricane Irma.
I can nearly hear you, why is the state specializing in a $225 declare? Can’t they simply let that slide and go after some hard-core fraudsters? I feel it’s vital that the state prosecute this specific fraudster, and any of (presumably) tons of of others that they might be investigating for related circumstances. Yep, I feel it’s as vital for any state, however notably Florida, to prosecute these small-time fraud circumstances. Let me lay out my case earlier than you begin to disagree with me.
Case Examine – NYC
Rudy Giuliani first turned Mayor of New York Metropolis in 1994. As Mayor, he labored along with his police commissioner to work to decrease the crime price within the metropolis. The prior mayor began a program to wash up the streets of New York, beginning with these guys that might panhandle by making an attempt to wash windshields of vehicles caught in site visitors. Giuliani expanded on that individual crack down by aggressively policing a number of minor offenses, together with graffiti, different panhandlers, and turnstile leaping (amongst others).
Supporters of this system consider that this crack down on these types of crimes created an environment the place individuals believed that crime was not going to tolerated beneath this new administration. The general crime price within the metropolis dropped noticeably over time that this program was in place.
Let’s apply that to the actual drawback of insurance coverage fraud (particularly in Florida). When the state decides to research and prosecute the small-time insurance coverage fraudster, and loudly publicizes it? Our buddy from the story I learn will get arrested and the courtroom imposes a penalty (I’m in favor of a hefty (no, actually, a HEFTY) high-quality). That’s when the press will get concerned. As quickly as that story will get picked up by a serious paper or web site, the world is aware of. That places others on discover and (probably) slows this stage of fraud down and places the big-time fraudsters on discover that the state is being attentive to them, too.
It’s not what you CAN see that’s vital
Yep. The state simply tell us that they’re working onerous on these actually easy circumstances. You would possibly say that we’re attending to see them choosing the low hanging fruit. Right here’s what I take note. What aren’t we seeing? What we aren’t seeing but, are the in-depth investigations which might be going down behind the scenes. This was a easy one and never the final one in my view. The provider noticed one thing humorous, most likely investigated most of it themselves, and despatched it to the state.
Carriers have investigators. The states have investigators. Each have knowledge that’s being mined by software program and other people. All of that leads us to 1 extra conclusion. Even whereas we’re seeing the state choose off that low fruit, they’re constructing ladders to choose off the fruit larger up the tree. Actually (making an attempt to not combine metaphors), they’re sharpening chainsaws to chop down some bushes.
Let’s be sincere, many people learn articles like this and really feel tempted to mock the state as a result of they’re taking up such small-time fraudsters. Nonetheless, I preserve that it solely appears small-time as a result of the big-time fraudsters are so massive. Really, our response must be gratitude as a result of these operations work collectively to assist preserve insurance coverage premiums down for all of us. Insurance coverage fraud doesn’t harm carriers. It hurts all of us which have to purchase insurance coverage.
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