A new study from the University of Georgia (UGA) has found that younger adults are significantly more willing to commit insurance fraud compared to older generations. The research, published in the Journal of Consumer Affairs and co-authored by Brenda Cude, professor emerita in UGA’s College of Family and Consumer Sciences, and Hanchun Zhang, explores the connection between age and attitudes toward fraudulent behavior in insurance.
Survey Findings
The researchers relied on survey data from the Coalition Against Insurance Fraud, which polled nearly 1,500 adults about their perspectives on insurance claims. Participants were asked whether they had considered — or had engaged in — fraudulent actions such as:
- Adding damages from before an accident to a car insurance claim
- Leaving out or falsifying information on an insurance application to secure better coverage or lower premiums
- Assisting a medical provider in billing for treatment not actually received
Respondents were also asked whether they personally knew someone who had engaged in these practices.
Younger Generations’ Views
Two out of five respondents between the ages of 25 and 34 indicated that they were comfortable with fraudulent actions in the survey scenarios. Many in this group described fraud as either a way to save money or a method of helping friends or family in difficult circumstances.
Cude noted that younger adults often interact with insurance companies in an impersonal way, sometimes viewing fraud as a victimless act. For example, changing the location where a car is parked for the purpose of lowering premiums may be seen by some as harmless, even though it qualifies as fraud.
Older Adults’ Views
By contrast, only about 5% of respondents aged 55 and older expressed approval of insurance fraud. The study suggested that older adults may have a stronger moral framework, with attitudes toward fraud tied more closely to ethical considerations.
Ethical and Educational Dimensions
The study also found that younger adults tended to change their views only when they perceived significant consequences or broader harm resulting from fraudulent actions. Cude suggested that generational differences might be linked to differing moral outlooks, with younger respondents more likely to apply a situation-based code of ethics.
Another factor highlighted by the research is a lack of understanding of what constitutes fraud. Many participants were unclear on where the line is drawn between legitimate claim practices and fraudulent ones.
Broader Sentiments Toward Insurance
The study reported that negative feelings toward insurance companies were common across all age groups. However, these sentiments did not appear to influence whether participants were more or less likely to engage in fraud.
Cude emphasized the potential value of education, suggesting that better understanding of how insurance works — and why insurers make certain decisions — could help reduce fraudulent activity.