How to Defeat Insurance Fraud

An Article for the CPCU Society’s

“Insights” Magazine

The preponderance of attempted insurance fraud is staggering and costly. But perhaps
even more startling, and certainly more avoidable, is the often-muted response
to such crime. The Coalition Against Insurance Fraud estimates that insurance
fraud costs the industry more than $308 billion a year. No one knows the full amount because most insurance fraud attempts succeed.

This article examines the extent of damage inflicted by insurance fraud, as well as strategies for deterring, and ultimately defeating, it. You can read it at CPCUSociety_INSIGHTS_Winter2022_Insurance_Fraud

To eradicate, or at least significantly reduce, fraud, insurance companies and states must work together, with each state invested in aggressively and vigorously fighting this crime. Today, a person perpetrating an insurance fraud need only be concerned about
payment delays or reduced amounts. Criminal prosecution of insurance
fraud is so minuscule, in relation to the amount of fraud, as to be nonexistent—and certainly does not act as a deterrent.

This article was originally published in the Winter 2022 edition of Insights: A Professional Journal by the CPCU Society and is shared with permission from The Institutes CPCU Society.


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Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 54 years in the insurance business. He is available at and

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About Barry Zalma

An insurance coverage and claims handling author, consultant and expert witness with more than 48 years of practical and court room experience.
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