Insurance fraud and technology
Digital Insurance
Independent reporting on insurance's digital transformation and the insurtech startup community.
AI and Generative AI enable us to communicate better, manage vast amounts of data, track deadlines and regulations across multiple jurisdictions, and create products in new and different ways. For carriers and brokers, the ability to sift through a wide variety of information and details allows them to bind policies faster, create personalized recommendations for clients and price coverage according to their risk profiles. It also enables them to more easily identify fraudulent claims because data allows them to compare water loss claims in California to claims in other major markets across the country and see if the damage estimates are appropriate for that market or if there is an anomaly that requires a closer look.?
For enterprising bad actors, Gen AI can make it easier for them to file fraudulent claims for items they don’t own or increase the actual damage estimates from a water loss because AI allows them to add three feet of water to a claim that is really only three inches deep. The good news for insurers is that there are tools to help identify these fraudulent claims.?
To get an idea of what brokers, agents and carriers are seeing, the research division for Digital Insurance is conducting a survey that asks whether they are seeing more fraud in certain lines of business such as P&C, workers' compensation or commercial lines; the source of any fraud, e.g., claimants, policyholders or vendors; and their expectations that it could increase at some point in the future as the use of Gen AI becomes even more mainstream.?
The survey takes only a few minutes to complete, and the results will be shared later this fall through the Digital Insurance website. Responses will be kept confidential, and the data will be aggregated to illustrate the trends seen in the industry. The survey closes soon, so insurers, agents and brokers can access it here to participate.