Thursday, May 05, 2005

A New Twist on Insurance Fraud

The FBI is looking into corporate fraud schemes in the insurance industry. Recently problems were uncovered at AIG, one of the largest companies. Apparently at AIG, they will be "restating" financial reports over a four year period by 2.7 billion dollars. The overstatement appears to have mislead investors.

In the recent past, ten executives in the industry have plead guilty to fraud charges and have been ordered to pay a billion dollars in restitution.

Most of us pay a hefty price for insurance. In addition to this, we are often told the reason it is so expensive is all the fraudulent claims they have to pay. Perhaps, it possible that these external fraud claims aren't the only reason?

Here is a link to an article with more information on this subject.

http://www.businessinsurance.com/cgi-bin/news.pl?newsId=5526

1 comment:

caesar said...

In the UK the issue of identity cards is burning. I am against them, but what are your thoughts? Will they help cut Identity theft or cost the country money a huge amount and prove ineffectual at the end?

Further information about my campaign against ID cards can be found at my blog: Unlimited Jargon.

Any comments you have would be well recieved.