24% of Americans in poll say claims padding is okay

New research suggests that 24% of Americans believe it’s okay to increase an insurance claim by a small amount to make up for their deductibles, although that percentage has declined over the past decade.

In a 2002 telephone survey, 33% said they believed padding claims was acceptable, notes the Insurance Research Council, which recently released the results of its 2013 online opinion study on insurance issues.

According to the most recent study, 18% of respondents said they believe it’s acceptable to increase a claim to make up for premiums paid in previous years when the have no claims, the IRC notes.

Still, that’s the lowest percentage in the years since IRC began asking that question in 1981.

Younger respondents, and younger makes in particular, are more likely to see claim padding as acceptable, the IRC says, with 23% of males between 18 and 34 agreeing it’s ok to increase claims by a small amount. Only 5% of males older than that, and only 8% of females between 18 and 34 said the same, IRC notes.

The study also suggests that 86% of Americans agree with the statement “insurance fraud leads to higher rates for everyone,” while 10% agree that “insurance fraud doesn’t hurt anyone.”

“The decline in the public acceptance of fraud is encouraging,” Elizabeth Sprinkel, senior vice president of the IRC commented in a statement on the report. “However, the fact remains that nearly one in four Americans are tolerant of claim padding behavior that has direct implications for claim costs and the cost of insurance for consumers,” she added.

“Moreover, one in ten believe that insurance fraud doesn’t hurt anyone, indicating the need for continued public education.”

Some respondents did show support for fraud-fighting, though, IRC says, such as:

• 66% of respondents said they approve of legislation to limit attorneys and medical providers’ access to police accident reports to solicit new clients or patients
• 80% said they were willing to participate in claims processes that could help insurers detect and prevent fraud, such as examinations under oath
• 82% said people who commit insurance fraud should be prosecuted to the full extent of the law, although the IRC says the consequences favoured for specific fraud incidences were less severe than in 2002

The survey was conducted online in June 2012 among about 2,000 adults across the U.S. The full report is available on the IRC’s website.