Security News > 2021 > November > Fraud fighters aren’t prepared for the multi-billion dollar threat of global insurance fraud

The research found that fraud fighters - professionals tasked with investigating and prosecuting insurance fraud - in North America were the least prepared for threats from abroad. "Organized rings, both foreign and domestic, are stealing billions," Coalition Co-Chair David Rioux of Erie Insurance said.

Globalized insurance fraud is not a priority at all for 27.7% of respondents and a low-to-medium priority for 57.5% of respondents, leading to a lack of resources and time invested in day-to-day operations fighting global insurance fraud.

Respondents from North America assign a lower priority for global fraud reflecting a smaller number of companies that underwrite global insurance lines.

56.8% of fraud fighters said they do not have dedicated resources or a fraud department specialized in dealing with globalized fraud - especially in North America.

While there is no single estimate of the annual cost of insurance fraud around the world, an Insurance Europe report estimated there were €13 billion of fraudulent claims in the EU in 2017.

Less than half of the worldwide respondents felt even "Somewhat confident" their organizations are equipped to address global fraud as opposed to the 4% who are "Extremely confident" their team is prepared for the challenge ahead. "The risk is real. The time to act is not tomorrow, but today," concludes the study in an industry-wide call to action to: conduct more in-depth research on the globalization of insurance fraud; make deeper investments in A.I., data analytics, and emerging technology in the fraud detection space; promote knowledge sharing among fraud fighters; and to conduct threat analyses and develop internal plans and procedures to guard against global insurance fraud.

News URL

https://www.helpnetsecurity.com/2021/11/23/insurance-fraud-threat/