Know How Smarter Artificial Intelligence is Battling against Insurance Fraud

By Insurance CIO Outlook | Tuesday, August 20, 2019

Artificial intelligence solutions are now essential weapons in the insurers' battle against fraud.  

FREMONT, CA: The insurance industry is held responsible for a mass of sensitive data concerning both its customers and employees. Any data breach in an insurance firm could compromise the personal information of multiple users in no time. But insurers now have the option of attaining better cybersecurity posture by utilizing groundbreaking technologies available to them. Artificial Intelligence (AI) among those, is truly reforming insurance systems by making it more secure and enhancing the interaction between humans and machines. From smart conversational agents to algorithms detecting fraud, the expanding brilliance of AI is already being used in insurance in many ways. The increased awareness about security and the game-changing influence of AI is erasing the initial hesitations and discomforts around AI implementation in the industry. Read on to know more about how AI applications can help insurers protect their network and databases from cyber-attacks.

• Predictive Analytics

Predictive analytics and anomaly detection are instrumented within the insurance enterprise network to counteract threats. Predictive analytics has explicitly numerous applications to protect sensitive data. Machine learning models are used to build them, and they ate trained on a variety of sequences of user activities within a network. The network activity data provided contains insights that flag the nature of actions, labeled as acceptable or usual. This allows the models to detect actions that are most likely to be fraudulent. The predictive analytics software detects inconsistencies and abnormalities in user activities in real-time. They are also potent in determining whether a human or any malware program performs a network action. As attackers keep innovating, predictive analytics are growing capable of recognizing new malware bots, programs, and other new iterations. AI's unique potential to scan through claims data and coverage patterns are leveraged by insurance companies to be more proactive and prepare well before a threat occurs.

• Advanced Visualization

Predictive analytics-based cybersecurity solutions are combined with the user interface to get accurate visualization of network threats for the users. This is allowing insurers to investigate attacks more profoundly. All information on one attack is grouped and labeled as one single event. Here AI is claiming to offer a threat visualization which can create incident reports for each occurrence and work to end threats permanently. AI is also used by insurers to find new patterns in network behavior that are the signs of a security breach. Through visualization, insurers are discovering weak points in their system. With which security team retains the machine learning model on all recorded instances. Often alerts are given to users of any issue with the database architecture that experts can fix.

• Anomaly Detection

Insurance companies are also protecting their sensitive information and networks with anomaly detection software. They are mainly used to solve more typical fraud detection problems like detecting fraudulent insurance claims. Here AI algorithms for cybersecurity are trained through direct installation to the network where user can analyze digital activity in real-time. Insurance claims are usually stored in a company's database, and AI has the potential to scan these documents to track actions performed. As it scans, machine learning models can draw a baseline of regular network activity and use that to recognize the likelihood of fraudulent activities. Anomaly detection slowdowns ransomware to and give chances for human employees to act upon. With this method, insurance firms can secure their widely accessible database and protect them against more advanced threats.

Insurers are considering the potential of AI in the sector with an optimistic attitude. To reap the full benefits of its possibilities, insurance firms across the world are devising enterprise-level strategies to implement AI. The winners in AI-based insurance are carriers that adopt innovative technologies to offer tailor-made products, streamline processes, and better cybersecurity posture.

Check out: Top Artificial Intelligence Solution Companies

Weekly Brief

Read Also