Florida, California and Colorado as well as urban areas in many other states, also are trying to rid themselves of these crime rings. Fraud is a threat to the insurance industry, not just because it eats at the bottom line but because it affects the industry's public standing, which is closely tied to the affordability of auto insurance. Over the past few years, insurance companies' favorability ratings have reached the highest point in decades, in part because auto insurance rates have been dropping. But public hostility could escalate quickly, especially if policyholders are required to bear the full rising cost of PIP coverage in New York state. It is essential that insurers tell the frightening facts about fraud's impact on prices, before the industry is forced to significantly raise rates to combat the effects of fraud.
Insurers have a strong story to tell.
They must take advantage of it now. Copyright 2001, A.M. Best Company Return to Table of Contents Contents of this site are subject to the A.M. Best Company Terms of Use . Questions or comments, please Contact Us.