More than half of North American insurers expect higher fraud losses: study
(Canadian Press DataFile Via Acquire Media NewsEdge) TORONTO _ More than half of North American insurance companies expect to see fraud losses related to personal insurance policies climb higher this year, a new study suggests.
Analytics software firm FICO surveyed 260 insurers in Canada and the U.S. in July 2013.
It found that 57 per cent of companies expect to lose more money this year due to fraudulent claims on personal insurance products _ policies designed to protect individuals and their families.
In Canada, the provinces expected to be hardest by insurance fraud in 2013 are Ontario and Quebec.
The survey also found that a third of insurers don't feel like they're adequately protected against fraud.
And more than half _ 61 per cent _ of insurers are seeing a rise in the prevalence of auto fraud rings, the study suggests.
"Insurance claims fraud is big business _ and it's getting bigger," said Russ Schreiber, vice-president of the insurance and health-care practice at FICO, in a statement.
"With more people resorting to fraudulent activities, and fraud rings becoming more sophisticated, insurers must step up efforts to protect good customers, uncover organized fraud and improve the effectiveness of specialized investigative units."
(c) 2013 The Canadian Press
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