Insurance Fraud High on White-Collar Crime List

Other than tax evasion, no white-collar crime tops insurance fraud. It sits in second place on the FBI’s data on white-collar crime.

Deloitte took a hard look at the FBI’s data and found insurance fraud costing the average U.S. family somewhere between $400 and $700 a year. That’s because insurers increase costs to compensate for the losses.

On an annual basis, insurers lose about $122 billion a year from fraud. These days more insurers are employing fraud detection technology and services. In 2023 they spent $4 billion on such services. By 2032 it’s estimated the figure will be eight-times that at $32 billion.

“Continuing to raise premiums to offset fraud losses is likely not a viable strategy for long-term profitability and market share growth,” Deloitte’s report noted. “By combining AI-driven anti-fraud technologies with advanced data analytics (depending on the law of each jurisdiction), insurers can enhance their capabilities to detect and prevent fraud. Insurers that pair sophisticated technology with human enablement can detect claims fraud and could potentially save billions of dollars for policyholders.”

AI is going to be a huge help in detecting and preventing insurance fraud. Suspicious language on claim forms, emails and social media posts can be identified. Audio and video can be easily analyzed as can satellite images of areas not easily seen from the ground.

The internet is a source of real-time analytics. It can reconstruct crashes. Data from vehicles can also be analyzed to legitimize a claim. Security cameras have been around for awhile and have been incredibly helpful but combined with AI, it increases the ability to catch fraudsters.

Simulation models can be used to replicate the behavior of medical providers and companies doing repairs. It can also catch over-billing and unnecessary services.

Source link: PropertyCasualty360.com — https://bit.ly/3GyT9vt