Tue, 22nd Oct 2024

In this episode of Financial Services Online's Weekly Insurance News Wrap, Paige Estritori discusses the growing use of artificial intelligence (AI) in the insurance sector to combat fraud, a problem intensifying in the digital age. Current losses due to undetected fraudulent claims are substantial, with costs reaching $400 million in Australia. In the US, disaster claim inflation has contributed to $9.2 billion in losses. Former cybercrime detective Andrew Gill sees the urgent need to change culture and regulation to anticipate and prevent fraud. However, AI technology, while being a tool used by fraudulent actors, provides a glimmer of hope. AI is proving to be a valuable ally in fraud detection and prevention by analyzing large datasets in real time. As fraud tactics evolve, so too do the insurance industry's strategies, utilizing AI technology to stay ahead of the fraudsters.