Mississippi commissioner warns insurance fraud raises premiums
Mississippi Insurance Commissioner Mike Chaney warned ahead of National Consumer Protection Week, which begins the first week of March, that insurance fraud is not a victimless crime and drives up costs for consumers.
In an op-ed, Chaney said scams range from sellers offering fake policies at unusually low prices to legitimate companies marketing non-insurance products as insurance and dishonest agents who pocket premium payments instead of forwarding them to insurers, leaving policyholders without coverage.
Chaney said the Mississippi Insurance Department Investigations Division opened more than 800 complaints in 2025, with more than 400 involving suspected fraud, and recovered more than $1.1 million for consumers following investigations.
He urged homeowners to contact their insurer promptly after a disaster so the company can verify needed repairs and to vet contractors by checking online reviews, complaints with the Better Business Bureau and the state attorney general’s office, and verifying a license with the state Board of Contractors. Chaney and the National Association of Insurance Commissioners recommend those steps to reduce the risk of being targeted by post-disaster fraud.
Chaney also noted that consumers can commit fraud by staging accidents, exaggerating claims or providing false information on applications. He cited a Coalition Against Insurance Fraud report that found three of four insurance companies believe fraud is growing and estimated $308.6 billion is stolen each year. He urged anyone who is a victim of or aware of fraud to call the Mississippi Insurance Department at 601-359-3569 or file a complaint online at www.mid.ms.gov. We will provide more information as it becomes available.
