Over the last 10 years the public acceptance of insurance fraud behavior has decreased from 33 percent in 2002 to 24 percent in 2012 according to the Insurance Research Council (IRC). 

Still that is nearly 1 in 4 respondents who believe it is acceptable to increase an insurance claim by a small amount to make up for deductibles they are required to pay. Younger respondents, especially young men, were much more likely to view claim padding as acceptable. Additionally, 18 percent believe it is acceptable to increase a claim to make up for premiums paid in previous years when they had no claims. But this also is an improvement and the lowest percentage since the question was first asked in a 1981 in-home survey.

“The decline in the public acceptance of fraud is encouraging,” said Elizabeth Sprinkel, senior vice president of IRC.  “However, the fact remains that nearly one in four Americans are tolerant of claim padding behavior that has direct implications for claim costs and the cost of insurance for all consumers.  Moreover, one in ten believe that insurance fraud doesn’t hurt anyone, indicating the need for continued public education.”

In this online public opinion study done by the IRC, respondents showed strong support for fraud-fighting efforts. Eighty-two percent (82%) agreed that persons who commit insurance fraud should be prosecuted to the fullest extent of the law.

Source:  Insurance Research Council, News Release – March 23, 2013  New Study Finds Lower Acceptance of Insurance Fraud