Summary of “Insurance Companies Are Paying Cops To Investigate Their Own Customers”

Erie Insurance, one of the nation’s largest auto insurers, had not only provided the cops with evidence against its own loyal customer – it had actively worked with them to try to convict him of insurance fraud.
Insurance companies provide financial incentives to scores of police departments, prosecutors, and other public agencies to encourage them to focus on insurance fraud, a crime that has traditionally not been a priority for local law enforcement.
These efforts to fight phony claims have netted insurers at least a sevenfold return on investment since the ’90s, according to the Coalition Against Insurance Fraud, a nonprofit that receives most of its funding from insurance companies.
Insurance company officials make up the majority of the authority’s board, which last year doled out $14 million in targeted grants to fund the work of roughly 100 prosecutors, investigators, and support staffers across the state dedicated exclusively to rooting out insurance fraud.
Those law enforcement officials collected $5.6 million in restitution from people accused of insurance fraud in 2018, money that went back to the insurance companies.
His salary of $93,549, as well as those of the police officers assigned to work on insurance fraud, was entirely covered by grants from the Pennsylvania Insurance Fraud Prevention Authority.
Three years later, the Coalition Against Insurance Fraud, a group composed of insurance companies, consumer groups, and other stakeholders, helped craft model legislation that guaranteed companies broad immunity from any customer who wished to sue for being wrongly accused of fraud.
NICB agents help vet thousands of suspected fraud reports shared by insurance companies, embed in task forces with the FBI, and help craft threatening letters to customers suspected of fraud on behalf of state insurance regulators.

The orginal article.