Normally we believe that fraud only damages the affected person, in this case the insurance company, the truth is that this painful event brings with it a series of consequences that affect beyond, discover them throughout the article!
Unfortunately, fraud can affect the honest citizen who has not even been involved in said fraud, in fact the problem is more serious than we think and some results are:
- Loss of savings: investment insurance scams are the most common in these cases, where the main target is the elderly who are affected by losing their life savings.
- Higher premiums: Insurers tend to keep auto and home policy prices high because they pass the high costs of insurance fraud on to policyholders, so the higher the amount of fraud the higher the insurer’s premiums.
- Higher prices: Many establishments increase their prices in order to have the money necessary to cover the cost of the medical and commercial insurance premium, part that ends up being payd the clients in some way.
- Health at Risk: There are many scammers on the market who offer health care policies that do not exist, or do so unnecessarily in order to increase illegal health insurance claims, putting the health of citizens at risk.
- Involvement of innocents: many citizens are involved in accidents or violent situations in order that someone can collect the insurance of some establishment, good or that of someone’s life.
We can summarize that if the common citizen thinks that insurance fraud only affects insurance companies, he is totally wrong. This problem has a large number of consequences that affect beyond what is seen at first glance, affecting the honest citizen and leading many businesses to bankruptcy.
As exaggerated as it may seem to some, allowing insurance fraud perpetrators to act freely can cause a chain of consequences that could even affect a country’s economy.