Insuranceciooutlook

AI, the Secret Weapon Helping Insurers Fight Fraud

By Insurance CIO Outlook | Thursday, August 29, 2019

While potential hackers impede the insurance companies, AI has swooped in like a hero to fight a war with fraudsters and save the firms.   

FREMONT, CA: In recent years, the demand for more inclusive cybersecurity has surged even among the everyday citizen. This is especially true for one’s personal and financial information, which fraudsters are continually finding new methods of breaching accounts to find. This need for security has also surged in insurance, and multiple AI firms are selling claims fraud detection solutions to the insurance sector.    

AI is playing a revolutionizing role in automated fraud detection for insurers regarding the enhancement of fraud prevention measures. Using ML algorithms, insurance firms have increased the integration of artificial intelligence beyond fraud detection. The capabilities that AI brings to insurance firms are unique and valuable. Virtual assistants offer unmatched customer services by leveraging natural language processing while automation driven by machine learning eliminates redundancy related delays to drive up efficiencies. Artificial intelligence can efficiently build more accurate predictive risk models by utilizing big data analytics and real-time IoT data streams to support strong pricing for personalized insurance products.

Fraud detection is undoubtedly challenging. With the advancement in technology such as AI, systems can now adapt, learn, and uncover the emerging patterns to prevent fraud. AI is perfect for identifying fraud with insurance claims. Machine learning models are smart and can learn and improve over time and encounter indications of fraud or unusual behavior new to insurers. They can raise flags in such cases and send claims to further review. Insurance firms have access to the implementation of AI with apt data, facilitating more proactive risk management.

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