Insurance companies are privy to some pretty important information. Our financial information. Our personal identifying information (PII). Our assets. This makes them a pretty good place to start for fraudsters.

Big Business

More than 7,000 insurance companies in the marketplace collect upwards of $1 trillion in premiums each year, reports the Federal Bureau of Investigation. The FBI says the sheer size of the industry makes it vulnerable to acts of crime, which costs the average American family between $400 and $700 per year in increased premiums. All told, insurance fraud (not including health insurance) totals $40 billion per year.

The FBI reports that these are the most common schemes (click here for the full list and explanations):

  • Premium Diversion (Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the money for personal use.)
  • Fee Churning (A series of intermediaries take commissions through reinsurance agreements.)
  • Asset Diversion (Occurs almost exclusively in the context of an acquisition or merger of an existing insurance company.)
  • Workers’ Compensation Fraud (Some entities purport to provide workers’ compensation insurance at a reduced cost and then misappropriate premium funds without ever providing insurance.)
  • Disaster Fraud Schemes (False or exaggerated claims by policyholders.)


A Good Offense is a Smart Defense

One of the most proactive things an insurance company can do is perform routine background checks for pre-employment screening and/or agent/broker checks. It’s the premiere screening strategy to help stave off crimes before they occur. Background checks can help you effectively and efficiently investigate claims, alert you to potential signs of criminal activity, and, hopefully, begin to reduce the amount of financial losses that currently plague the insurance industry.


Insurance companies, however, must tread carefully in complying with government regulations, particularly if they’re going to conduct background checks. The most positive move an insurance company can make is to partner with a trusted, reliable and nationally-accredited screening agency like Active Screening who can help them take any guesswork out of the background check process.


Trusted Partner

Active Screening is experienced in helping insurance companies maintain compliance with the Insurance Fraud Prevention Act and corresponding State Regulatory Laws, as well as screening regulations like the Fair Credit Reporting Act. We have an extensive background in developing and implementing solutions for employees, agents and temps. Additionally, we provide solutions for Special Investigation Units. Active Screening develops comprehensive screening solutions that meet not only your needs, but those of the insurance industry in general.


Here are some of our solutions for insurance providers:


 Identity & Credit
Establish your applicant’s identity, address history and personal responsibility.

Driver’s Records
Determine eligibility for driving a company or personal vehicle for business use.

Criminal Records
Identify criminal convictions or lack thereof so that you can hire with confidence.

References & Credentialing
Confirm the information provided on a resume and/or job application.

Substance Abuse Testing
Insulate your organization from workplace accidents, violence and rising health care costs.

Electronic I-9 Solutions
Verify your applicant’s right to work through integration with E-Verify.

Global Solutions
For a global workforce or organizations who hire overseas individuals.

Applicant-Entry Solutions
Give your applicants a simple online paperless form and payment solution.


Let’s Talk

Active Screening is that rare company who not only excels at what we do, but works diligently to provide customized screening options for a range of industries, including the insurance industry. We know that one size does not fit all when it comes to background checks. And we know that your company has unique requirements. That’s why we promise to ask you questions, listen to you, ask more questions, engage with you, trouble shoot with you, ask even more questions, maximize efficiency with you, and in the end, provide the best customer service and screening solutions you have ever used. Our team members are standing by to talk with you at 1.800.319.5580. Let’s work together to try to reduce the amount of money that fraud is costing your insurance company and your clients.





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