Unlocking fraud intelligence through better data sharing

Improved intelligence sharing, streamlined RAD processes and AI-driven tools are critical to tackling organised, sophisticated fraud, says CRIF’s Sara Costantini.
 

Insurance fraud, in all its guises, is becoming increasingly sophisticated – from exaggerated claims to application fraud, staged or induced accidents and complex, organised fraud networks armed with the latest technology. Industry collaboration is needed to tackle the threat.

Research conducted by Insurance Post in partnership with CRIF reveals a clear consensus across the UK market: collaboration and intelligence sharing are critical to tackling fraud effectively. However, while the willingness to share information exists, many insurers continue to face significant operational and technological barriers that limit the effectiveness of current processes.

The findings suggest that effective fraud prevention will depend on better detection tools and creating faster, more efficient ways to exchange intelligence across the industry.

A more complex fraud environment

The survey highlights the growing challenges insurers face. Exaggerated or inflated claims were identified by 80% of respondents as the most significant fraud issue today. 68% believe fraud has become more technology-enabled over the past three years.

Notably, fraud specialists were more likely than claims professionals to highlight organised criminal networks and technology-driven fraud as a primary threat, suggesting that specialist teams are seeing increasingly multifaceted challenges emerging across the market.

This growing complexity reinforces the importance of access to timely intelligence. Fraudsters often operate across multiple insurers, products and channels, making it difficult for any single organisation to maintain a complete view of risk. Effective intelligence sharing therefore plays a crucial role in helping insurers identify patterns, uncover connections and respond more quickly to emerging threats.

 

Collaboration is no longer optional

The industry’s commitment to collaboration is unmistakable. Almost nine in ten survey respondents described collaboration and intelligence sharing as either ‘critical’ or ‘very important’ to tackling fraud effectively.

Respondents also recognised benefits extending beyond fraud detection. Stronger collaboration was expected to improve fraud detection rates and reduce fraud losses, while also accelerating claims resolution, lowering operational costs and delivering better customer outcomes.

Intelligence sharing is increasingly seen as essential to fraud prevention, while improving operational efficiency and customer service. Faster access to relevant information can help insurers make more informed decisions earlier in the claims journey, enabling genuine customers to be treated more quickly while ensuring suspicious activity receives the right scrutiny.

 

Earlier access to external data could help insurers identify risks before a claim occurs or before business enters the book.

How fraud intelligence is shared today

The survey found that fraud intelligence is most commonly shared through centralised industry databases, formal legal request processes and third-party data and analytics providers.

Most collaboration takes place during active fraud investigations, followed by early-stage claims assessment and first notification of loss. Relatively few respondents reported regularly sharing intelligence during underwriting or pre-claim stages.

This suggests that while collaboration is well established once concerns have been identified, there remains an opportunity to use shared intelligence more proactively. Earlier access to external data could help insurers identify risks before a claim occurs or before business enters the book.

 

The important role of the RAD process

Formal information-sharing processes, including requests for access to data (RADs), remain a vital component of the industry’s fraud prevention framework.

The survey found that structured fraud data requests are used frequently, or at least sometimes, by the majority of respondents; with specialist fraud teams relying on them particularly heavily. These processes provide a recognised and compliant mechanism for obtaining information from other organisations where fraud concerns exist.

The RAD process plays an important role in enabling insurers to investigate suspicious activity more effectively. Access to intelligence held elsewhere in the market can help identify linked claims, reveal patterns of behaviour and support more informed investigative decisions.

However, while the value of these processes is widely recognised, the survey highlights growing frustration with how information exchange operates in practice.

 

The challenge is friction

When respondents were asked about challenges associated with formal data requests, three issues stood out consistently: delays in receiving responses, a lack of streamlined digital processes and inconsistent responses between organisations.

Many information-sharing workflows still involve varying levels of manual administration, document handling, email exchanges and internal review processes. While these controls remain important, they can also introduce delays and increase the administrative burden on already stretched fraud teams.

The appetite to collaborate is evident, but is often constrained by processes that have not evolved at the same pace as the threats they are designed to address.

Investigators may spend considerable time preparing requests, tracking responses and managing communications instead of focusing on analysis and investigation. Inconsistencies in processes between organisations can further slow progress and create uncertainty around response expectations.

These findings align closely with the broader challenges identified in the survey. Resource constraints, technology limitations, cross-industry data-sharing difficulties and operational delays all ranked among the most significant barriers to tackling fraud effectively.

The appetite to collaborate is evident, but is often constrained by processes that have not evolved at the same pace as the threats they are designed to address.

 

 

What technology limitations really mean

Technology limitations were identified as one of the top challenges facing fraud teams, particularly among specialist investigators.

In practical terms, this often reflects fragmented systems, manual workflows and limited interoperability between organisations. Valuable intelligence may sit across multiple platforms, requiring investigators to spend time gathering, validating and consolidating information before it can be used effectively. As fraud volumes increase and schemes become more sophisticated, relying on manual effort alone becomes increasingly difficult to sustain.

As fraud volumes increase and schemes become more sophisticated, relying on manual effort alone becomes increasingly difficult to sustain.

This is where digital transformation can deliver meaningful benefits. Technology can help streamline information exchange, reduce administrative overheads and improve process consistency, without compromising the governance and compliance requirements that underpin trusted intelligence sharing.

Future fraud prevention

Better intelligence sharing, faster and more secure data exchange, and greater use of AI-driven insights will form key pillars in future fraud strategy.

The survey revealed strong support for secure, standardised digital collaboration, with 90% of respondents supporting the concept and 62% expressing strong support. A standardised digital approach could help reduce delays, improve transparency and create greater consistency across organisations.

Structured workflows, automated tracking and clearer audit trails would allow intelligence to move more efficiently while maintaining appropriate controls. The objective is to facilitate greater information sharing while ensuring relevant intelligence reaches investigators more quickly and in a format that supports faster decision-making.

AI is expected to play an increasingly important role. An overwhelming 87% of respondents identified AI-driven detection tools as one of the most important developments for the next five years. The greatest opportunity lies in combining AI with richer external intelligence and stronger collaboration. These capabilities can help identify patterns, prioritise investigations and uncover connections that might otherwise remain hidden.

Compared with sectors such as banking, which has often adopted new technologies and collaborative fraud prevention initiatives more rapidly, the insurance industry has a significant opportunity to build on existing momentum and fast-track innovation.

As fraudsters continue to embrace increasingly sophisticated techniques and technologies, accelerating the adoption of modern solutions and enabling stronger industry collaboration and information exchange will be key to staying ahead of emerging threats.

  

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