Best tools for fraud prevention - AI & Data Analytics

Frauds in the insurance sector has been a major concern but insurers are now looking at latest technology measures:

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It is a fact that insurance frauds have been there ever since insurance has been there. Experts admit that leakages and frauds cannot be altogether eliminated in the sector but can only be controlled or managed. There has been substantial loss incurred by insurance companies across the globe on account of frauds, in spite of having implemented some of the state-of-the art counter measures, including use of the latest of the technology, especially AI and analytics. As fraudsters become highly sophisticated and keep one step ahead of the anti-fraud measures in insurance companies, it is now imperative for the industry to devise strategies and implement tools so that frauds are ideally prevented rather than allowed to happen and remedial measures are taken.

Fraudulent claims, exaggerated claims, counterfeit claims and even theft are the major instances of frauds in the insurance industry. In some countries, fraud detection is part of the laws that govern insurance, especially life and health insurance.

MANY WAYS OF FRAUDS

An insurance fraud can be committed in several ways by both buyers and sellers. These can include:

• Misrepresenting or falsifying information on an application

• Misrepresenting or falsifying information on an insurance claim

• Staging an accident or injury to make a claim

• Filing a false health insurance claim

• Selling insurance products from illegitimate or fake insurance providers

• Embezzling insurance premiums