I.I.I. Testifies on No-Fault Auto Insurance Fraud In New York State
This testimony, delivered by Robert Hartwig, president of the Insurance Information Institute, before the New York State Senate Insurance Committee, addresses the problem of rapidly escalating no-fault auto insurance claim costs in New York State. Hartwig focus on the following three issues: the magnitude of the problem; drivers of claim costs in the system; and the history of no-fault fraud and abuse in the state. The testimony concludes that New York’s large and competitive auto insurance market is threatened by rampant fraud and abuse. No-fault fraud and abuse has cost New York’s drivers and their insurers at least $813 million since 2005, including approximately $204 million in 2010, the second consecutive year in which costs exceeded $200 million. Solutions for containing the emerging crisis must necessarily focus on cost drivers. But because the state has the highest no-fault dollar threshold in the country, it remains attractive to those who perpetrate fraud based on the perception that the insurers who pay the bills are a “deep pocket.” The testimony is accompanied by a PowerPoint presentation.
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Robert P. Hartwig, Ph.D., CPCU, President & Economist, testified before New York State Senate Insurance Committee on April 26, 2011.
The hearing focused on "No-Fault Auto Insurance Fraud In New York State". You can download the testimony below: