What motivates individuals to commit insurance fraud?

The motivation behind individuals committing insurance fraud often stems from a desire for extra benefits without entitlement. This encompasses actions where individuals intentionally misrepresent facts or circumstances to gain a financial advantage that is not rightfully theirs. For example, someone may exaggerate a loss or make false claims, driven by the belief that they deserve more than they are entitled to under their policy. This pursuit of obtaining additional money or benefits without having a legitimate claim is a key reason for the occurrence of insurance fraud.

Genuine misunderstandings, while they may sometimes lead to disputes or claims, do not typically result in the intentional deceit that characterizes fraud. Improving insurance policies is not a motivating factor for committing fraud; rather, it is something that the insurance industry continuously strives to achieve. Higher premiums are a consequence that results from fraud's impact on the industry, not a motivation for individuals to commit such acts.