Despite what you may hear on TV, or what insurance companies want you to believe, insurance fraud has decreased yet again Michigan. According to the National Insurance Crime Bureau (NICB), an organization run by insurance companies “exclusively dedicated to preventing, detecting and defeating insurance fraud”, the number of QCs, or Questionable Claims, dropped again in 2012. Questionable claims are those claims that NCIB member insurance companies refer to NCIB for closer review and investigation based on one or more indicators of possible fraud.
In 2012, there were 3,134 claims. In 2010, there were 5,023 Michigan QCs, representing a 38% drop from 2012. According to the NCIB, the top 5 cities in Michigan generating the most QCs in 2012 were Detroit (1,119), Flint (94), Dearborn (71), Grand Rapids (59) and Southfield (54). The top five loss types were theft, personal injury protection (PIP), collision, fire and other auto.
From my own experience, the way the NCIB defines a QC and the way many auto insurance companies define a QC must vary greatly. For example, based on the way they treat their own policyholders and handle even basic no-fault PIP claims, State Farm Insurance basically considers every claim as questionable.
Still, the NICB results are welcome news. Even the insurance industry’s owns organization tasked with exposing insurance fraud agrees that insurance fraud is down in Michigan. This is good news for policyholders and the industry as a whole. I’m looking forward to seeing what the NICB found in 2013.