FOR IMMEDIATE RELEASE
Baltimore, MD — Executive Director Al Redmer, Jr. announced today that Maryland Auto Insurance has launched an initiative aimed at combatting auto insurance fraud in Maryland.
The FBI projects that insurance fraud accounts for over $40 billion in costs annually. On average, U.S. families feel the impact of fraud through increased premiums of $400 to $700 per year.
Before joining Maryland Auto, Mr. Redmer was Maryland’s longest tenured Insurance Commissioner. “As Commissioner, I saw the financial costs that all of us pay due to the significant amount of insurance fraud that occurs every day. Maryland Auto has a talented fraud investigative team and it’s something that we take very seriously. We are going to devote even more time and attention in an effort to make sure we are engaging in best practices to reduce our exposure even more,” he said.
Claims Manager William Buck, who oversees Maryland Auto’s Special Investigations Unit, is leading this new initiative. The Unit will focus their efforts on identifying the most common factors found in fraudulent policy applications and claims. Maryland Auto is committed to improving the ability to identify and prevent fraud by enhancing current procedures including IT automation, claims and underwriting procedures. The initiative will also include a focus on internal and external education. Additional training will be provided for adjusters and educational material for consumers will also be developed.
“Through our collective efforts, we will be able to put a wall up against fraudulent actors whose actions have led to increased premium costs for the public and make it difficult for us to meet our overall goal and mission of reducing the uninsured population in our state,” Mr. Buck said.
Mr. Redmer indicated that a point of emphasis for Maryland Auto’s fraud prevention team is to deter non-Maryland residents from obtaining Maryland Auto policies. Maryland statute requires all Maryland Auto policyholders to be residents of Maryland, with either a Maryland driver’s license or a vehicle registered in Maryland. However, “we have people buying Maryland Auto policies who can’t locate Maryland on a map. We are going to have a laser focus on preventing non-residents from fraudulently purchasing coverage through Maryland Auto,” said Redmer.
About Maryland Auto
Maryland Auto Insurance is a mission-driven company dedicated to reducing the number of uninsured drivers on Maryland roadways by providing accessible, affordable insurance to drivers who currently are unable to obtain coverage from standard carriers. Maryland Auto was established in 1972 by the State of Maryland to protect its citizens from the risks and costs associated with uninsured driving. To learn more about Maryland Auto, visit www.MyMarylandAuto.com.
Contact: Cathy Nyce, 301-509-6490, Cathy.Nyce@MarylandAuto.Net