Security News > 2022 > January > Use of AI to fight insurance fraud hits all-time high

Insurers' use of predictive analytics to fight fraud has reached an all-time high, according to an insurance fraud technology study by the Coalition Against Insurance Fraud and SAS. The study reveals that 80% of insurers use predictive modeling to detect fraud, up from 55% in 2018.

"The shifts we've seen since the 2018 study emphasize the increasingly sophisticated technologies needed to foil insurance fraudsters' criminal exploits," said David Hartley, Director of Insurance Solutions at SAS. "Predictive modeling is up 25%. Text mining has nearly doubled, jumping from 33% to 65% in three years. These findings prove that, even as COVID-19 has fueled rampant fraud, insurers are agilely stretching their advanced analytics capabilities to counter rapidly changing threats."

Insurance fraud causes more than $80 billion in losses annually in the United States alone.

Survey recipients are employed by insurance companies that comprised at least 80% of the estimated property and casualty premiums written in the U.S. insurance market in 2020.

"Capturing these trends over time enables us to understand how, and to what extent, insurance companies use anti-fraud technology," said Dave Rioux, Coalition co-Chair and Chair of the organization's Research Committee.

"Wider adoption of emerging technologies and deeper investment in human- and machine-powered fraud fighting capabilities will help turn the tide of fraud flooding the domestic and international insurance markets."

News URL

https://www.helpnetsecurity.com/2022/01/28/insurance-fraud-technology/