As the nation recovers from the effects of COVID and the downward spiral of the economy, the insurance industry is feeling the effect on claims. The main impact is inflation, but also an increase in potentially fraudulent claims and increased thefts.
Rockford Mutual is seeing an increase in both stolen vehicles and catalytic converters as well as more break-ins and robberies on the property side. We partner with NICB and CARFAX to report fraudulent activity and track the recovery of stolen vehicles. On the property side, in addition to claim investigation, we may utilize private investigators, counsel and forensic accountants to validate the loss.
Industry leaders are predicting that fraud will continue to increase and we have not yet seen the worst of it. According to the Coalition Against Insurance Fraud there has been a 41% increase in identity fraud since the onset of COVID. The combination of inflation and a recession has provided the perfect climate for an increase in fraud in all areas of insurance.
When our policyholders fall on hard times, circumstances may cause them to turn to insurance fraud which ranges from the padding of claims to something more serious such as arson. Another impact on total thefts of vehicles is the lack of adequate antitheft protection on certain models of Kia and Hyundai vehicles. Rockford Mutual has experienced an increased number of claims from thefts of these models of vehicles. While there appears to be some resolution for the deficiency, there are lawsuits being filed against the automakers in attempts to recover for those claim payouts. Any policyholders that have a Kia or Hyundai model affected by this should contact their dealer to request the free anti-theft software upgrade to prevent the vehicles from starting using the “TikTok” method. We also recommend that you direct owners of the affected Kia & Hyundai models to their dealerships to have the deficiency remedied.
In Illinois, House Bill 2842 has been proposed, addressing the increase in stolen Kias and Hyundais. If passed, this bill would prohibit policy language surrounding excluding coverage when there is no evidence of forced entry. Rockford Mutual
currently has no such language.
Our agents are our frontline defense in fighting fraud. By reporting any suspicious claim circumstances to the adjuster or by calling our fraud hotline, you’re helping us in settling claims fairly. As stated above, we have not seen the worst of the fraud increase and by working together, we can minimize the effects of fraud on our claims.
RMIC FRAUD HOTLINE
1-800-610-6437
If you suspect fraud and want to remain anonymous, please call our fraud hotline. It’s available 24/7/365!
Comments