US insurers have given their support to a proposed package of anti-fraud laws.
The draft legislation, drawn up by the National Conference of Insurance Legislators, aims to tackle people who attempt to procure clients in order to pursue fraudulent claims against insurers.
The draft legislation has been welcomed by the Alliance of American Insurers (AAI). AII director of claims, Kirk Hansen, said: "Fraud is far from being a victimless crime. It costs consumers dearly through higher insurance costs.
"The insurance industry spends $650m annually trying to detect and deter fraud. This total does not count the untold millions in money paid out for undetected fraudulent claims."
"Perpetrators of insurance fraud need to be put in jail, not only to get them off the streets, but also to deter others who might be tempted to commit fraud. This model gives states a strongly-worded, uniform bill that can be passed easily in the states, and will help put the bad guys behind bars."
