Crop Insurance What About Fraud Waste and Abuse
October 12th, 2007 by David Graves
How well have crop insurance companies performed in managing fraud, waste and abuse?
The Risk Management Agency (RMA) utilizes an independent third party – the Center for Agribusiness Excellence (CAE) – which is affiliated with Tarleton State University, to track the integrity of the program through data mining research. At a recent meeting jointly sponsored by RMA and National Crop Insurance Services (NCIS), the following is what the CAE director – Dr. Bert Little – has to say about fraud, waste and abuse in the federal crop insurance program:
“About 0.2 percent, or less than one percent, of the policies in the crop insurance industry shows up as anomalies in our data mining,” Dr. Little told the group. “That’s one heck of a lot better than property and casualty where 10-12 percent of the claims are fraudulent.”