IRC Study Suggests Fraud and Buildup Contribute to Recent Trends In Florida Auto Injury Claims

Apr 04, 2001, 01:00 ET from Insurance Research Council

    MALVERN, Pa., April 4 /PRNewswire/ -- People making auto injury claims in
 Florida-especially those in the Miami metropolitan area-are more likely to
 report more extensive and more expensive medical treatment than claimants in
 all no-fault states, even though they report similar injuries.  Attorneys also
 play a more significant role in the claims process in Florida than in all
 no-fault states, according to analysis of personal injury protection (PIP)
 claiming behavior by the Insurance Research Council (IRC).
     "Outright fraud and exaggeration of otherwise legitimate claims (buildup)
 add billions of dollars to the cost of auto insurance nationwide," according
 to Elizabeth A. Sprinkel, senior vice president, who heads the IRC.  "This
 report supports the findings of the Florida Grand Jury report on insurance
 fraud.  It suggests that PIP claiming behavior is a particular problem in
 Florida and that reform is needed."
     The results contained in IRC's recently released report, Auto Injury
 Claiming Behavior in No-Fault States: An Analysis of Florida PIP Trends, is
 the latest in a series of IRC studies on auto injury claim trends.
     For more information on the study's methodology and findings, contact
 Elizabeth Sprinkel by phone at (610) 644-2212, ext. 7568; by fax at
 (610) 640-5388; or by e-mail at irc@cpcuiia.org .  Or visit IRC's Web site at
 www.ircweb.org .  Copies of the study are available at $10 each in the U.S.
 ($20 elsewhere) postpaid from the Insurance Research Council, 718 Providence
 Rd., Malvern, Pa. 19355-0725. Phone: (610) 644-2212, ext. 7569.
 Fax: (610) 640-5388.
 
 

SOURCE Insurance Research Council
    MALVERN, Pa., April 4 /PRNewswire/ -- People making auto injury claims in
 Florida-especially those in the Miami metropolitan area-are more likely to
 report more extensive and more expensive medical treatment than claimants in
 all no-fault states, even though they report similar injuries.  Attorneys also
 play a more significant role in the claims process in Florida than in all
 no-fault states, according to analysis of personal injury protection (PIP)
 claiming behavior by the Insurance Research Council (IRC).
     "Outright fraud and exaggeration of otherwise legitimate claims (buildup)
 add billions of dollars to the cost of auto insurance nationwide," according
 to Elizabeth A. Sprinkel, senior vice president, who heads the IRC.  "This
 report supports the findings of the Florida Grand Jury report on insurance
 fraud.  It suggests that PIP claiming behavior is a particular problem in
 Florida and that reform is needed."
     The results contained in IRC's recently released report, Auto Injury
 Claiming Behavior in No-Fault States: An Analysis of Florida PIP Trends, is
 the latest in a series of IRC studies on auto injury claim trends.
     For more information on the study's methodology and findings, contact
 Elizabeth Sprinkel by phone at (610) 644-2212, ext. 7568; by fax at
 (610) 640-5388; or by e-mail at irc@cpcuiia.org .  Or visit IRC's Web site at
 www.ircweb.org .  Copies of the study are available at $10 each in the U.S.
 ($20 elsewhere) postpaid from the Insurance Research Council, 718 Providence
 Rd., Malvern, Pa. 19355-0725. Phone: (610) 644-2212, ext. 7569.
 Fax: (610) 640-5388.
 
 SOURCE  Insurance Research Council