Policyholder Fraud

Policyholder fraud occurs when an individual intentionally provides false or misleading information, or conceals important facts, to obtain an insurance policy, increase a claim amount, or avoid paying premiums. This dishonest behavior aims to reduce costs or gain benefits unlawfully. Examples include exaggerating injuries after an accident, staging a theft, or hiding prior damages to receive a payout. Such fraud undermines the fairness of insurance systems, leads to higher premiums for honest customers, and contributes to increased costs for insurers. Detecting and preventing policyholder fraud is crucial to maintaining the integrity and affordability of insurance coverage.