Skip to Main Content

Insurance Fraud Investigators


The insurance industry in America started even before the country declared its independence from England. In 1752, Benjamin Franklin founded the Philadelphia Contributionship, one of the first insurance organizations in what is now the United States to provide fire insurance (fires were a major threat to businesses and homes at the time). In the early 1800s, one of the first life insurance companies—The Presbyterian Synod of Philadelphia—was formed for the religious denomination’s ministers and their dependents.

Insurance fraud has occurred ever since the first insurance policy was written. With so much money at stake when fraud occurred, insurance companies created the position of fraud investigator to ferret out spurious insurance claims. Since the late 1980s, state laws have required most insurance carriers to form and maintain an in-house fraud special investigations unit, or hire a private firm to provide these services.

In recent years, sophisticated software and surveillance technology has been developed to assist insurance fraud investigators in their work, yet there will always be a need for hands-on investigation and analysis of potential instances of fraud.