Insurance Fraud

TWIA is committed to preventing and fighting insurance fraud as part of our mission to efficiently provide essential property insurance products to coastal Texans.

What is insurance fraud?

  • Insurance fraud is a serious crime.
  • Insurance fraud is the intentional use of deception to receive money or other benefits in an insurance transaction.
  • Insurance fraud is committed by all types of people at every level of society, not just by hardened criminals and organized crime rings.
  • Insurance fraud may involve false information on an insurance application, exaggerating a claim for damages, or billing for services never rendered.
  • Insurance fraud is not a victimless crime.

Why should I worry?

  • Insurance fraud is a costly crime racking up an estimated $80 billion in fraudulent claims each year. [Source: Coalition Against Insurance Fraud]
  • Insurance fraud contributes to higher policyholder premiums and higher costs of goods and services because businesses must pass the increased premiums on to their customers.

How can you protect yourself?

  • Contact TWIA’s Fraud Hotline at 1-800-625-0425 or the Texas Department of Insurance 1-888-327-8818 if you think you're being scammed or someone asks you to take part in fraudulent activity.

What is TWIA doing to help?

  • Special Investigation Unit: TWIA contracts with trained investigators who have law enforcement experience to investigate suspected fraud.
  • Train employees: TWIA trains claims and underwriting staff on how to spot fraud.
  • Educate consumers: TWIA educates consumers about how to protect their families against scams and offers a toll-free hotline to report fraud.
  • Coordinate with regulator: TWIA works closely with the Texas Department of Insurance to report and investigate suspected fraud.