How honest are North American insurance customers? Of the survey respondents who had submitted a claim within the past two years, we found that:

  • Globally, 17 percent admitted to inflating claims: 15 percent in auto insurance, 21 percent in home.
  • In the US, 15 and 38 percent of respondents admitting to inflated auto and home claims, respectively.
  • In Canada, 13 and 22 percent admitting to inflating auto and home claims, respectively.

The most common reasons for overstating claims were that premiums were too high, or that service was poor. But most interesting, we saw no change in the incidence of fraud among very dissatisfied, dissatisfied and satisfied customers—only when customers were very satisfied did we see a noticeable decrease in fraudulent claims.

Yet another reason to invest in the claims experience: mere satisfaction doesn’t preclude inflated claims and fraud. In today’s world, it’s essential to find ways to provide additional value to customers.

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