60% of Indian Insurers experience a rapid rise in Insurance fraud.
Insurance industry is quite an old business which has been sustaining upon traditional operational processes for ages. However, as times have changed, the insurers are rapidly adapting to the efficient insurance technological platforms which is making insurance fraud detection and flagging simple, efficient and steadfast. Contrary to the manual methods for detecting insurance frauds. Additionally, with the emergence of Artificial Intelligence, insurance technological solutions are equipped with the advanced power of automation that makes insurance fraud detection 10X faster and efficient.
What Change AI is Bringing in Insurance Fraud Detection?
There has been a drastic rise in Insurance fraud because of the straining traditional fraud detection methods. Not only is there a significant monetary loss but there is also significant erosion of trust both from the middle and high velocity insurers followed by the erosion of confidence among the users and stakeholders.
With the adaptation of Machine Learning (ML), Natural Processing Language (NLP) and Computer Vision, the insurers are experiencing a revolution in insurance fraud detection. This AI integration in insurance technology platforms is defying the traditional ways for fraud detection which were highly based on historical data and manual methods.
Challenges in Fraud Detection
The traditional methods of insurance fraud detection are quite burdening for insurers. Insurers face complexities such as the complex nature of the fraud, limited resources of investigations, insufficient data analytics and more. These challenges can be mitigated by insurers head on with AI in insurance.
Hop on to the next section to explore the benefits of AI in insurance fraud detection!
How AI can Bring Transformative Changes in Your Fraud Detection Methods?
20% of claim adjusters are extensively using AI as a preventive technique against fraudulent claims. (Source- Deloitte, Insurance Report 2023)
Here are the top ways how AI can bring transformative changes in fraud detection:
Automated Claims Processing
AI has been revolutionizing claims processing with automation. This spans from submission to payout. Advanced algorithms swiftly verify these claims’ details against the extensive datasets that detect discrepancies and anomalies with precision. It significantly minimizes human errors and expedites processing legitimate claims.
AI-Driven Data Analytics
By analyzing the vast quantities of historical claims data, AI establishes a baseline for normal claims behavior. When there is a deviation from this baseline, it is flagged as a potential anomaly. This empowers the insurers to proactively investigate and mitigate fraudulent claims more actively.
Advanced Pattern Recognition
AI is capable of leveraging algorithms as well as Natural Language Processing (NLP) that automatically identifies patterns of fraud in historical data. Drives efficiency in unusual behaviors or irregularities in claims data. With integration of AI in fraud detection systems, it can seamlessly flag these anomalies
Seamless Integration with Existing Systems
With the effortless integration into the existing systems, AI enhances operations without having to require a complete infrastructure overhaul. This capability ensures that there is value added to the legacy systems and traditional methods by incorporating modern analytics and detection tools.
How iNube can Help You in the Fraud Detection Journey?
As the AI in Insurance use cases increases, iNube likes to stay ahead of the competitive edge. With the development of the exclusive labs wing- AI Quest, iNube is equipped with a dedicated team of AI experts for bringing cutting edge AI driven solutions that will enable solving many insurance challenges, including fraud detection.
Book a session with us to know more!
