The National Insurance Crime Bureau is a nonprofit that investigates insurance fraud and theft
The National Insurance Crime Bureau (NICB) is a nonprofit organization funded by insurance companies to investigate fraud, theft, and other crimes that affect the insurance industry. It is not a government agency, though it works closely with law enforcement. The NICB maintains databases of insurance claims, vehicle thefts, and fraud patterns that insurance companies use to spot suspicious claims and catch repeat offenders.
If you file an insurance claim — for a car accident, a stolen vehicle, property damage, or a medical incident — there is a chance the NICB will review it, especially if something about the claim looks unusual to your insurer. The NICB does not decide whether to pay your claim; your insurance company does. But the NICB's investigation can influence that decision, and understanding how it works helps you know what to expect if your claim is flagged.
Key Takeaways
- The NICB investigates insurance fraud and theft on behalf of insurance companies, but does not have the power to deny your claim or prosecute you directly.
- Your insurance company decides whether to send your claim to the NICB for investigation, usually when something about the claim seems inconsistent or high-risk.
- The NICB maintains a database of vehicle thefts and insurance claims that insurers check before paying out, which is why providing accurate information matters.
- If the NICB suspects fraud, it can refer the case to law enforcement or the state insurance commissioner, which can result in criminal charges or license suspension.
- You have the right to know if the NICB is investigating your claim and to see what information they have collected about you.
How the NICB gets involved in your insurance claim
Your insurance company is not required to send every claim to the NICB. Instead, insurers use their own fraud-detection systems first. If a claim triggers a red flag — for example, the damage estimate seems too high, the timeline does not match the police report, or you have filed multiple claims in a short time — your insurer may request an NICB investigation.
The NICB also investigates claims that insurance companies refer because they suspect organized fraud rings or staged accidents. In vehicle theft cases, the NICB checks its database to see if the car has been reported stolen before, if there are outstanding loans against it, or if similar thefts have happened in your area recently.
You will usually be notified if an investigation is underway, though the timing and method vary by insurer. Some send a letter; others mention it during a phone call. The notification should explain what is being investigated and what information the NICB may request from you.
What information the NICB collects and how it is used
The NICB gathers information from multiple sources: your insurance claim form, police reports, medical records (if applicable), photos of damage, repair estimates, and interviews with you, witnesses, or other parties involved. Investigators may also pull public records, check social media, or review prior claims you have filed with any insurance company.
This information is stored in the NICB's databases, which insurance companies can search when you file a new claim. If you have a history of claims, your insurer will see that history. The NICB also shares data with law enforcement agencies, state insurance commissioners, and other insurance companies through its network.
The goal is to identify patterns: people who file multiple claims for similar incidents, staged accidents, or exaggerated damage. The NICB does not make judgments about individual claims in isolation; it looks for behavior that suggests fraud across many claims or many people.
What happens if the NICB suspects fraud
If an NICB investigation concludes that fraud likely occurred, the organization can refer the case to law enforcement (local police, state police, or the FBI, depending on the scope) or to your state's insurance commissioner. It can also recommend that your insurance company deny the claim.
A fraud referral does not mean you will be charged with a crime. It means there is enough evidence to warrant a criminal investigation by police or a regulatory investigation by the state. From that point, law enforcement or the state takes over, and the NICB steps back.
If you are charged with insurance fraud, the consequences can include criminal penalties (fines and jail time), civil liability (paying back the fraudulent amount plus damages), and a permanent mark on your insurance record. Your state insurance commissioner can also suspend or revoke your insurance license if you work in the insurance industry.
Your rights when the NICB investigates
You have the right to know that an investigation is happening and to understand what you are being investigated for. You also have the right to see the information the NICB has collected about you, though you may need to submit a formal request in writing.
You can hire an attorney to represent you during an NICB investigation, and you have the right to refuse to answer questions without legal counsel present. Anything you say to an NICB investigator can be used against you later, so it is wise to consult a lawyer before speaking to investigators if you believe the investigation could lead to fraud charges.
If you believe the NICB has incorrect information about you, you can request a correction. Contact the NICB directly or ask your insurance company to help you file a dispute. Inaccurate data in the NICB database can affect future claims, so correcting errors early matters.
How to check if you are in the NICB database
The NICB does not publish a public database you can search yourself. However, you can request information about what the NICB has on file about you by contacting the organization directly. The NICB has a consumer request process, though response times vary.
A simpler route is to ask your insurance company whether they have run an NICB check on you or your vehicle. Many insurers will tell you if you ask directly. You can also review your insurance claim history through your insurer's online portal or by calling your agent.
If you are shopping for insurance and want to know what prior claims are showing up in databases, ask potential insurers what they see when they pull your record. This gives you a chance to correct errors before you bind a new policy.
The difference between NICB investigations and insurance company denials
It is important to understand that the NICB investigates, but your insurance company decides. An NICB investigation does not automatically mean your claim will be denied. Your insurer may receive the investigation report and still pay the claim if they find the evidence insufficient or if they believe you acted in good faith.
Conversely, your insurance company can deny a claim without involving the NICB at all. They might deny it because the damage is not covered under your policy, because you missed a important date, or because you did not follow the claim process correctly. An NICB investigation is one tool insurers use, not the only reason claims are denied.
If your claim is denied and you believe it was wrongful, you can file a complaint with your state insurance commissioner. The commissioner can investigate the denial and compel the insurer to explain their reasoning. This is separate from any NICB investigation.
Frequently Asked Questions
Can the NICB prosecute me for fraud?
No. The NICB is a nonprofit investigative organization, not a law enforcement agency. It can investigate and refer cases to police or prosecutors, but it cannot charge you or bring criminal charges itself. Only law enforcement or a district attorney can prosecute.
Will an NICB investigation delay my claim payment?
Possibly. Investigations can take weeks or months, and your insurance company may hold payment until the investigation concludes. Some insurers will pay the claim while the investigation is ongoing; others will not. Ask your insurer for a timeline when you learn an investigation is underway.
Does the NICB share information with other insurance companies?
Yes. The NICB maintains databases that insurance companies can access when you file a claim with them. If you have filed claims with multiple insurers, those companies can see your claim history through the NICB system. This is why accurate information on every claim matters.
What should I do if I am contacted by an NICB investigator?
You can speak to them, but you are not required to without an attorney present. If you suspect the investigation could lead to fraud charges, consult a lawyer before answering questions. If you straightforward want to cooperate, you can provide information, but keep your answers factual and brief.
How long does NICB information stay on file?
The NICB does not publish specific retention periods, and they vary by type of record and state law. Generally, claim information stays in databases for years, which is why old claims can still affect your insurance rates or future claim decisions. You can request that outdated or incorrect information be removed by contacting the NICB directly.