An open letter from state fraud
bureaus to insurers
Hello from Venus. To my neighbors from Mars, the NAIC’s Anti-Fraud
Task Force discussed last week how we all have noticed a decline in referrals
state fraud bureaus are receiving from insurer victims. Howard Goldblatt’s
followup FraudBlog pursued that theme constructively.
Notice I used the word victim. We consider insurers just that, a
victim.
Now we agree with SIU directors that the “black hole” still exists
in some instances. We find ourselves
concentrating so hard on cases that make the cut that we often forget to give
you feedback. We really don’t want you to stop reporting because you are weary
of the “black hole.”
State fraud bureaus also hope you remember your obligation to report cases to us. Some states even
have made it a crime not to report. Let me stress that reporting to us should
not feel like an obligation. You should have faith that we will do the best we
can to fight insurance fraud and make sure that every state’s residents are
protected from paying for those who break the law.
We have really tried hard over the past few years to give you
options to report to us in a convenient manner. Many of you have offered
excellent and appreciated suggestions. We have listened to your input, and have
implemented many of your ideas. We know the process is not always perfect,
though it is getting better.
We have partnered with organizations such as the Coalition to
educate you on how to report insurance fraud to us. We certainly welcome any
dialogue that can put this issue to rest. I actually asked Howard this week for
help in reaching out to you. We want to be the first to step up and ask that
you join us in a dialogue that can help us serve all states’ residents while
preserving your business interests.
I must say that we have a strong group of fraud directors across
this great country. We are committed to eliminating insurance fraud. We are
meeting in Seattle, Wash. in a few weeks. I am sure this issue will be
discussed at length. We really seek your help. We are all in, over here in
Venus.
About the author: Shane Guyant is director of the Criminal
Investigations Division of the North Carolina Department of Insurance. He also
chairs the NAIC’s Antifraud Task Force.
