The future of insurance fraud

fraud

While fraud practices have evolved over the years, in more recent times insurers have been able to better detect fraud and have seen significant savings. 

The Insurance Fraud Bureau has partnered with Shift Technology to help better detect fraud and ultimately protect people in a rapidly changing fraud landscape. As fraudsters become increasingly sophisticated the insurance industry needs to adapt to respond as quickly and effectively as possible.

The IFB has seen changes in the way organised fraudsters carry out crash for cash scams – with the evolution of contrived, staged and through to deliberately induced collisions putting UK motorists’ lives at risk. Historically, fraudsters relied on personal injury claims after these fake collisions, but this has developed to include claims for associated costs such as vehicle storage, recovery and the hire of replacement vehicles. There has also been a rise in application fraud where scammers are using an individual’s personal information or fabricating details. 

During times of recession, the frequency of scams has the potential to increase significantly.  

With this in mind Insurance Post in association with Shift Technology explored how the insurance industry is adapting to changes in fraud and what can be learned about the past to inform the future.

Among the questions the panel addressed are:

  • To what extent insurers are using AI technology in their own fraud detection tool kits to combat the problem?
  • As the insurance sector puts more emphasis on straight through processing and self-service fulfilment for claims, does fraud detection become harder given the reduced touch points? And if so, how can the counter fraud sector manage that?
  • Where else do tensions exist between counter fraud departments and other parts of the business due to the increasing use of technology and data?
  • The phrase Know Your Enemy comes up repeatedly when we are talking about fraud detection. How well does the insurance sector know what the fraudsters are up too; how is this evolving; and what can be done to improve the identification of fraudsters before they commit a crime?
  • If there is a technology arms race going on, where is most pronounced? Between different insurers? Between insurers and fraudsters? Or a combination of both?
  • What Does Good Look Like in terms of fraud detection and prevention in 2021; and what will be the main differences in a year or two?

Joining us for the discussion are:

Scott Clayton, head of fraud, Zurich

Matt Crabtree, complex and organised crime manager, LV

Stephen Dalton, head of intelligence and investigations, IFB

Arnuad Grapinet, chief data scientist, Shift Technology

Jon Radford, SIU claims manager, QBE Europe

To watch on demand

 

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