PriyaPatel
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TLDR:
- 65% of insurance claims handlers have noticed an increase in fraudulent claims since the cost-of-living crisis hit.
- 19% suspect that up to one in four claims are now using fake supporting documents that have been created or altered using artificial intelligence (AI) and digital tools.
Key Elements:
Claims handlers believe advancements in technology and economic pressures are driving fraudulent activity, with up to one in four claims generated by AI or altered data. Research from claims automation company Sprout.ai shows that 65% of insurance claims handlers have noticed an increase in fraudulent claims since the cost-of-living crisis hit. Additionally, 19% of those surveyed suspect that up to one in four claims are now using fake supporting documents that have been created or altered using artificial intelligence (AI) and digital tools.
Due to the cost of manually reviewing every claim, some insurers auto-approve claims below a certain threshold, and the survey suggests fraudsters have taken advantage of this. Research also indicates that fraudsters are focused on smaller value claims worth less than £2,000, with claims valued between £501 and £1,000 most likely to use AI-generated or altered images, maps, medical reports, or valuation certificates.
The cost-of-living crisis is thought to be driving up fraud rates, with 65% of the claims handlers surveyed reporting an increase in fraudulent claims since 2021. Roi Amir, CEO of Sprout.ai, suggests that insurers need to fight AI with AI to combat insurance fraud. Sprout.ai has released a new intelligent claims evidence processing product to enhance the accuracy and speed of claims processing.
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