Imagine sipping coffee and reading the headline in a newspaper that says- ‘Insurance Fraud Detected in Your Operations’. Terrifying, isn’t it? Well, this is what happens to millions of insurers who read news of rapidly rising cases of global insurance fraud every year. They silently hope that they don’t become victims of insurance fraud. Every year insurers end up paying over $300 Billion annually. However, with the rapid growth of insurance technology, especially with the infusion of AI, this terrifying insurance fraud landscape is changing. Let’s dive deeper!
Navigating Through the Past
While focusing on the future is important, shedding light on the past is important too. In the past decade insurance fraud detection has been heavily relying on manual efforts that has led to the introduction of manual errors and potential negligence in insurance fraud detection. Fraudsters would deploy methods like fabricating insurance claims, exaggerating damages or stage fake accidents to extract the maximum coverage of a policy. Insurers would deploy investigations teams who would go through heaps of paperwork to find the red flags and flag fraud.
However, this inaccurate and inefficient insurance scenario has now changed!
AI in Fraud Detection: How Technology is Revolutionizing Insurance Fraud Detection?
AI in insurance is changing the landscape of fraud detection. AI in insurance fraud detection has been playing a key role in analyzing large volumes of insurance data and identifying the patterns that would indicate fraudulent activity. Ai in insurance fraud detection is not just an efficient option but also it can quickly detect suspicious claims and flag it.
Here are the top AI automation types that are aiding insurance fraud investigators:
Natural Language Processing (NLP)
With the Natural language processing AI automation, the insurers will be able to analyze the text within the insurance claims, emails and even will be able to record phone calls between the policy holders and insurance agents. With a capability of identifying unnatural patterns, contradictions or language from natural patterns, this tool suggests any fraudulent intent
Data Analysis and Pattern Recognition
Traditional insurance fraud investigation relied on manual processing that included sifting through piles of documents to detect any abnormalities. However, with AI in insurance investigation, this has become easier with the AI’s capabilities to analyze millions of claims in real-time and accurate flagging of potential insurance frauds
Predictive Analytics
AI in insurance can become even more valuable in insurance fraud investigation if the AI systems can leverage predictive analytics. With this, these systems will be quipped to detect the likelihood of a fraudulent claim before it goes for processing. This saves manual work and a lot of time.
Automated Image Analysis
With this automation type, the AI systems will be capable of automatically analyzing images that are given in support of a claim. The AI in insurance technology will be able to detect any kind of alteration that might have occurred in the images, suggesting potential fraud.
What Lies Ahead in the Future?
Despite the significant impact that AI has made in insurance investigations and in combatting fraud, there are still challenges that are lurking on the horizon. As technology continues to evolve, so will the strategies that will be adopted by fraudsters. Hence, insurers need to step up their game and stay ahead by continuously updating their AI systems and exploring new insurance fraud detection technologies.
How iNube stands at the Forefront of this Evolution?
Insurers are grappling to adapt to the dynamic insurance market, with the advent of AI in insurance investigations. iNube understands the cruciality of this pivot in operational flow to combat insurance fraud. With an effective and efficient claims investigation system infused with the power of automation, iNube empowers insurers to detect fraud effectively.
Book a session with our insurance technology expert to know more!
