Fraud, Investigations & Compliance
The Insurance Fraud unit combats insurance and arson fraud. Its mission is to:
- promote insurance fraud prevention, detection and reporting through consumer outreach and education,
- facilitate cooperation and communication among insurers, state and federal agencies, law enforcement, and insurance industry groups,
- provide oversight of and assistance to insurers', anti-fraud programs, and,
- determine and report on the scope and patterns of insurance fraud in Connecticut.
Some of the functions performed by the unit include:
- receiving consumer and insurer questions concerning insurance fraud,
- coordinating the Insurance Department's action concerning insurance fraud allegations with other state and federal agencies, consumers, insurers, law enforcement and industry groups,
- researching the patterns of and reporting on the scope of insurance fraud in Connecticut
- developing information useful in alerting the general public to the dangers and costs of insurance fraud, and,
- performing a program of consumer outreach and education for insurance consumers to promote the prevention, detection and reporting of insurance fraud in Connecticut.
Insurance fraud has a major financial impact on the State's insurance consumers. Estimates have placed the economic cost of insurance fraud to the average family to exceed $1,800 in additional premium expense annually. The total cost to Connecticut's insurance consumers is estimated to be as much as $1.9 billion annually. Some frauds, such as arson and staged auto accidents, place citizens in physical danger, while fraudulent insurance investment schemes can jeopardize life savings.
The Insurance Department's public outreach provides citizens the information needed to spot, avoid and report suspected insurance fraud. Civic and community groups are encouraged to contact the Insurance Department to schedule presentations or obtain the Department's insurance fraud publications.