After an extensive two-year review of anti-fraud efforts, the US general insurance industry is taking action on insurance fraud which costs it an estimated $US30 billion ($36 billion) a year. It has been estimated by some insurance studies that fraud adds up to $US300 ($360) to average annual insurance costs for families.

The National Insurance Crime Bureau (NICB) says individual insurers continue to refine their anti-fraud processes and expand them into claims-handling procedures, but today’s sophisticated criminals present a special challenge.

It says the industry’s approach to fraud has been fragmented and inadequate. There are isolated examples of effective anti-fraud programs, but a nationwide co-ordinated effort on multiple fronts is necessary.

It identified five “pillars” as critical components in an effective anti-fraud structure: public awareness, legislative advocacy, training, data analysis and investigation.

The NICB has been asked to develop an integrated business plan for a new fraud-fighting organisation incorporating the five pillars, and Chairman Mark Russell welcomes the industry request. “With a co-ordinated assault on fraud, we have an excellent opportunity to have an impact upon this perennial problem,” he said.