Nathan Strebeck, the Deputy Commissioner for Insurance Fraud, discusses the significant impact of insurance fraud on Louisiana residents. He highlights that insurance fraud costs the state approximately $308.6 billion annually, translating to about $1,000 per person over 18 years old. Strebeck emphasizes that this cost is a substantial burden on households, with his own family spending around 10% of their income to subsidize insurance fraud.
Strebeck explains that his office is undergoing a reorganization to tackle all forms of insurance fraud more aggressively. Historically, their focus was primarily on licensing investigations, but they are now expanding their efforts to include all types of insurance fraud. This shift includes adding 30% more staff and partnering with the Louisiana State Police and the National Insurance Crime Bureau to streamline investigations and avoid overlapping efforts.
A significant challenge has been the lack of quantifiable data on insurance fraud within the state. To address this, Commissioner Temple and his legislative partners passed Act 614, which aims to quantify the extent of insurance fraud in Louisiana. This data will help measure the effectiveness of their initiatives and ensure they are making progress in combating fraud.
Strebeck also mentions the broader implications of insurance fraud, including its impact on various types of insurance, such as homeowners and medical insurance. He notes that fraud can take many forms, from post-storm claims to staged accidents. The office’s efforts are part of a larger strategy to reduce the overall cost of insurance for Louisiana residents.
Additionally, Strebeck highlights an upcoming conference session on generative artificial intelligence and deep fakes, which can be used in fraudulent activities. This session aims to educate attendees on the risks and challenges posed by advanced technologies in the context of insurance fraud.