White Lies Being Told By Clients:Poll
by Donald Horne | 16 Mar 20,2015
Insurance Business
We asked brokers what percentage of their clients were telling white lies when it came to their auto insurance policies – and the numbers aren’t encouraging.
Five said that ‘probably half’ of their clients are fibbing on their auto insurance, with four estimating between ‘10-20 per cent’ and four more saying they believe ‘less than 5 per cent.’
Perhaps more telling, three brokers felt that ‘most of them (50-75 per cent)’ were telling lies, while another three felt that ‘just about everybody (over 75 per cent)’ were lying on their auto insurance for a cheaper premium.
Two brokers felt that ‘almost 30 per cent’ of their clients weren’t being completely honest on their auto insurance, while no one voted for 5-10 per cent.
According to Anne Marie Thomas of Insurance Hotline, small lies consumers tell when applying for insurance falsely inflate the cost for everyone. In fact, roughly 15 per cent of people’s insurance premiums go toward covering false claims.
“There are smaller types of insurance fraud that people commit, and you don’t even think of it being fraud,” said Thomas in the article, ‘The reason your clients are paying an extra $3bn in annual premiums.’ “For example, telling your insurer ‘I don’t drive to work,’ and the truth is, you drive 50 kilometres one way to work.”
Our next poll looks at the statement made by the head of the Royal Bank of Canada last week, hinting that he may be taking his company out of the P&C space.
Brokers Feel Used
I usually find articles in Insurance Business website informative even though they are typically very brief.However,this piece doesn’t educate anyone on anything as it relies on insurance brokers guessing they may have been scammed by their clients based on how they “felt”. Very scientific poll.Possibly 21 brokers were questioned,we’re not told how large or small the sample was.Regardless,they think they have liars for clients.Some thought clients were “fibbing”,some were “lying”or were “telling lies”when making a claim.Some clients”weren’t being completely honest” according to this poll.What is the distinction between fibbing,lying,telling lies and not being completely honest,you’re either lying or your not.
Then this article trots out another statistic,it’s validity in question as well.The consumer is being forever being told that fraud increases each driver’s premiums by 15 %. Collectively,that costs drivers 3 billion every year.But hang on,the insurance industry has also claims that fraud costs them 3 billion dollars every year(currently the IBC website has lowered their claim down to 2 billion). That’s 5-6 billion every year,an unsubstantiated claim.There’s no denying that fraud does occur but to the extent that the IBC makes it out to be is to fantastical to believe.A forensic report produced by KPMG offers different information on the amount of fraud the industry claims they are victims of.
The June 13,2012 report,Auto Insurance Fraud in Ontario states that fraud in Ontario “ranges between $770 million and $1.6 billion per year.”That’s a wide spectrum but understandable when you read the report,it’s difficult to quantify because perpetrators attempt to avoid detection.What this ultimately admits is they just don’t know.
One day maybe we can all have an adult conversation regarding auto insurance in Ontario but with such obtuse information that’s constantly evangelically promoted by the malpractice media,that discussion isn’t in the near future.
Source: http://thecrashtested.com/brokers-feel-used/
by Donald Horne | 16 Mar 20,2015
Insurance Business
We asked brokers what percentage of their clients were telling white lies when it came to their auto insurance policies – and the numbers aren’t encouraging.
Five said that ‘probably half’ of their clients are fibbing on their auto insurance, with four estimating between ‘10-20 per cent’ and four more saying they believe ‘less than 5 per cent.’
Perhaps more telling, three brokers felt that ‘most of them (50-75 per cent)’ were telling lies, while another three felt that ‘just about everybody (over 75 per cent)’ were lying on their auto insurance for a cheaper premium.
Two brokers felt that ‘almost 30 per cent’ of their clients weren’t being completely honest on their auto insurance, while no one voted for 5-10 per cent.
According to Anne Marie Thomas of Insurance Hotline, small lies consumers tell when applying for insurance falsely inflate the cost for everyone. In fact, roughly 15 per cent of people’s insurance premiums go toward covering false claims.
“There are smaller types of insurance fraud that people commit, and you don’t even think of it being fraud,” said Thomas in the article, ‘The reason your clients are paying an extra $3bn in annual premiums.’ “For example, telling your insurer ‘I don’t drive to work,’ and the truth is, you drive 50 kilometres one way to work.”
Our next poll looks at the statement made by the head of the Royal Bank of Canada last week, hinting that he may be taking his company out of the P&C space.
Brokers Feel Used
I usually find articles in Insurance Business website informative even though they are typically very brief.However,this piece doesn’t educate anyone on anything as it relies on insurance brokers guessing they may have been scammed by their clients based on how they “felt”. Very scientific poll.Possibly 21 brokers were questioned,we’re not told how large or small the sample was.Regardless,they think they have liars for clients.Some thought clients were “fibbing”,some were “lying”or were “telling lies”when making a claim.Some clients”weren’t being completely honest” according to this poll.What is the distinction between fibbing,lying,telling lies and not being completely honest,you’re either lying or your not.
Then this article trots out another statistic,it’s validity in question as well.The consumer is being forever being told that fraud increases each driver’s premiums by 15 %. Collectively,that costs drivers 3 billion every year.But hang on,the insurance industry has also claims that fraud costs them 3 billion dollars every year(currently the IBC website has lowered their claim down to 2 billion). That’s 5-6 billion every year,an unsubstantiated claim.There’s no denying that fraud does occur but to the extent that the IBC makes it out to be is to fantastical to believe.A forensic report produced by KPMG offers different information on the amount of fraud the industry claims they are victims of.
The June 13,2012 report,Auto Insurance Fraud in Ontario states that fraud in Ontario “ranges between $770 million and $1.6 billion per year.”That’s a wide spectrum but understandable when you read the report,it’s difficult to quantify because perpetrators attempt to avoid detection.What this ultimately admits is they just don’t know.
One day maybe we can all have an adult conversation regarding auto insurance in Ontario but with such obtuse information that’s constantly evangelically promoted by the malpractice media,that discussion isn’t in the near future.
Source: http://thecrashtested.com/brokers-feel-used/
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