Problems with under funding of state insurance fraud bureaus leading to a remarkably low incarceration rate are not helping to combat the issue. This coupled with insurers reluctance to share vital information with each other lets the wheels of insurance fraud to keep spinning.
Some recommendations for stamping out insurance fraud include:
- Insurers need to press for a federal immunity law to protect carriers, and others, who aid the fraud fight against malicious prosecution actions and bad faith charges.
- Re-evaluation of the amount they invest to fight fraud.
- Elimination of collaboration roadblocks.
- Supporting improved anti-fraud legislation.
