09/10/2013
Chief of Iowa Fraud Bureau Keynotes 2013 PLRB Central Regional Adjusters Conference in Des Moines
The Central Regional Adjusters Conference convened Tuesday morning, September 10 at the Des Moines Marriott Hotel, with keynote speaker Cindy Schmell, Chief, Insurance Fraud Bureau, Iowa Division of Insurance. Her address, "Recent Insurance Fraud Fighting Efforts," detailed the many initiatives the state of Iowa has taken against fraud.
The Fraud Bureau receives about 600 referrals annually to be investigated. About 40% to 50% of the investigations involved people with a history violent crime, Schmell said. It would be easy for an adjuster to inadvertently wind up in a crime scene, such as a m**h lab in rural Iowa, she warned. A financial crimes task force has been created because of the violent element now involved with financial fraud.
Increasing numbers of cargo theft referrals are being investigated by the Fraud Bureau, said Schmell. But the largest trend in Iowa is medical identity theft, she noted. This trend could eventually find its way to property and casualty claims through med pay and bodily injury coverages.
A major trend in the medical fraud area is prescription drug diversion. Schmell noted that prescription drug use has increased by up to 300%, but the population of Iowa has only increased 12%. The increased use of prescription drugs has led to many accidents and incidents by people who are under the influence of mind-altering medicine.
Chief Schmell said that the Fraud Bureau utilizes social media in all their investigations. The authorities are using data from Skype videos, and information from Craigslist to identify stolen property, in addition to Google alerts, to mention just a few tools they employ.
There are databases to which fraud bureaus in different jurisdictions can post referrals, as well as research all reported fraud referrals nationally, said Schmell. The department has the ability to send fraud alerts that can assist insurers in identifying potential organized fraudulent activity. Not only are the authorities sharing information between jurisdictions, she noted, but they are also cooperating in the prosecution of fraud crimes.
Chief Schmell's fraud fighting advice to the adjusters in the Opening Session audience was to communicate within the insurance industry. Ensuring that all parts of the company are aware of the fraud potential is crucial, she said.
Often a fraud criminal will first contact a company's customer service department and attempt to learn about claim guidelines. That will help them develop fraud schemes that will "fly under the radar," she said, with little documentation required.
Have a toll-free 800 telephone number that employees or insureds can call to report potential fraudulent activity is another important tool to fight fraud, said Schmell.
The breakout sessions for property and casualty adjuster professional development began for the 800 registered claims professionals following the General Session.
Lunch with the exhibitors will be provided both today and Wednesday in the Des Moines Marriott Hotel's Des Moines Exhibit Hall, giving attendees an opportunity to meet with claims service providers and learn of new and innovative services available to assist with claims managements.
The afternoon sessions begin at after lunch and end in the late afternoon. A reception is on the agenda for Conference attendees after today's sessions.
Adjuster continuing education credit is available for most of the sessions offered at the Central Regional Adjusters Conference.
Registration at the door is available through Wednesday morning.
The Central Regional Adjusters Conference is dedicated to providing professional development to front-line adjusters, supervisors, and managers.
