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Insurance fraud losses are rising in the US, the UK and many other markets across the globe. Insurers are experiencing higher incidences of opportunistic fraud (exaggeration of legitimate claims), as well as premium leakage due to misrepresentations and omissions on coverage applications. Crimes by organized fraud rings are also increasing in number and sophistication.
The result for US property and casualty insurers is an estimated $30 billion lost to fraud each year, driving up operational costs and rates.
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