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Letter to the Editor

Insurance Fraud Prevention Authority in Pennsylvania Releases Statistics for 2000

MECHANICSBURG, Pa. -- The Pennsylvania Insurance Fraud Prevention Authority (IFPA) released its annual statistics, and the numbers tell a story of hard-nosed enforcement of a crime that may cost Pennsylvania's families $5,000 a year.

The IFPA funds 13 law enforcement units throughout the commonwealth using assessments on insurance companies. Without spending one cent of taxpayer money, the IFPA has had an undeniable impact on fraud in the state. For the year 2000, the IFPA's funded units:

• Made 285 arrests
• Prosecuted cases resulting in $693,000 in court-ordered restitution
• Helped save $7 million in potential victim loss, the amount insurers would have paid out in bogus claims

Since 1996, IFPA-funded units have made 1,440 arrests, been responsible for court-ordered restitution of $5.1 million, and helped save $33.9 million in potential victim loss.

"Pennsylvania has always been an innovator and a leader in the fight against insurance fraud," said Roy Miller, executive director of the IFPA. "These latest statistics show that the IFPA model works. But more importantly, the numbers send a clear message: If you're going to commit insurance fraud, you'd better not do it in Pennsylvania."

Miller said that aggressive prosecution, high-profile fraud cases and the IFPA's ongoing media campaign have all helped raise public awareness of insurance fraud in 2000.

But Miller also said that, because insurance fraud continues to place a financial burden on consumers, the anti-fraud push must continue. A Conning & Co. study released in late January estimates that insurance fraud costs families approximately $5,000 a year in higher premiums and higher consumer costs.

The Pennsylvania Insurance Fraud Prevention Authority was created by the Pennsylvania State Legislature when it passed the Insurance Fraud Prevention Act in 1994. The IFPA arms law enforcement and prosecutors with the resources necessary to fight insurance fraud. It also operates an aggressive, ongoing public awareness campaign. The IFPA funds its efforts through assessments of insurance company that write policies in the state. It uses no taxpayer dollars.

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