From 2022 to 2023, international financial services provider, Allianz, has seen a 300% increase in motor insurance claims using fake images, videos, and documents. Insurance fraud using AI affects all types of insurance including motor, home, health, and life insurance. Undetected fraud leads to financial losses and reputational damage for insurance companies. Additionally, these losses are passed onto policyholders–resulting in higher premiums. In the worst case, policyholders can lose their insurance because they can no longer pay the higher premiums. To prevent these undesirable outcomes, CTOs and cybersecurity leaders in the insurance industry must stay ahead of bad actors by implementing solutions to tackle insurance fraud using AI.
How Insurance Fraud Occurs
Insurance fraud has evolved from shallow fakes (fakes created using editing software) to deepfakes (fakes created using AI) because deepfakes are more realistic and harder to detect. The types of deepfakes used …