Questionable insurance claims in Michigan dropped by 38 percent from 2010 through 2012, according to the National Insurance Crime Bureau (NICB).
Questionable claims (QC) are those claims that NICB member insurance companies refer to NICB for closer review and investigation based on one or more indicators of possible fraud.
In 2010, there were 5,023 Michigan QCs referred to NICB from its member insurance companies. In 2011, the number decreased to 4,434 and in 2012, it dropped again to 3,134 — a 38 percent decrease from 2010′s figure.
The top five cities in Michigan generating the most QCs last year were:
- Detroit (1,119)
- Flint (94)
- Dearborn (71)
- Grand Rapids (59)
- Southfield (54).
The top five CBSAs reporting QCs were Detroit-Warren-Livonia; Flint; Grand Rapids-Wyoming; Ann Arbor and Lansing-East Lansing. The top five loss types were: theft, personal injury protection, collision, fire and other auto.
It is important to note that QCs represent a fraction of overall claims traffic. Nationally in 2012, QCs totaled 116,268 out of an overall claims population of more than 70.5 million—or 0.164 percent. The volume of QC referrals can increase or decrease over a given period of time and may be caused by a number of factors, including better reporting by the industry and an increase or decrease in fraudulent activity, etc.