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Axis Capital Insurance Group Review: Fraudulent Insurance Act Punishable By Law

With the wide spread of insurance fraud, you might start asking if there is assurance in your life plans. The insurance industry already has positioned itself in the modern world as a necessity and it will continue to hold its stand. All over the world, there are reports of insurance frauds and scams and insurance and reinsurance companies have set up their own investigation team on the alarming increase of scammers.

In America, insurance is always in demand since people and business are always looking for ways to minimize hazard fees. Because of the level of insurance concentrated in Urban Centers, insurance companies have set up ways to investigate each claim for its validity and legitimacy. In 1993, insurance fraud investigators to stage several bus crashes in New Jersey. All of the passengers inside the buses were investigators. After the crash, they receive claims from people who jumped into the accident or just merely passed by, stating that they have been hit or injured. Because of this, the Coalition against Insurance Fraud was created. They have put out warnings to the public as well as to different insurance companies on the different schemes and possible ways of earning money by scammers. Both state and federal laws prohibit both soft and hard insurance fraud in the US. The practice has been recognized as a serious crime and a favorite scheme for organized crime, and has, as a result, criminalized insurance fraud.

United Kingdom has their own ways to eliminate insurance fraud acts. They also have their own insurance fraud agents from City of London Police to t heir Insurance Fraud Bureau. The biggest percentage of scams came from car insurance. The number of dishonest motor claims rose by 34% to 59,900, attempting to cheat the industry out of £811m, as reported by BBC in May, 2014.

Insurance fraud figures are highest in the areas with higher insurance penetration, reflected in the global market breakdown, with Europe accounting for 35.9 percent of the global insurance market in 2011, North America 28.9 percent, and Asia 28.2 percent, according to Swiss Re in 2012. The Middle East and Central Asia by comparison accounts for 0.9 percent of global share, Africa 1.5 percent and Latin America 3.4 percent. While regions like the Middle East have a way to go, and the Asia markets are in general bringing systems up to speed to tackle rising fraud, more advanced insurance markets are moving ahead. Cities such as Jakarta, Indonesia, Cambodia, Singapore and India in which Insurance group of companies struggle to survive, they also struggle to keep track on their loss over the Insurance fraud.