The Growing Problem of Fraud in the Insurance Sector
It’s no secret that Fraud is one of the biggest problems the insurance sector faces, whether it’s committed by individuals opportunistically, or by sophisticated syndicates.
The Impact of Fraud on General Insurance
In the current economic climate, threats continue to evolve at pace, with businesses investing heavily to stay ahead of new and emerging risks. In the General Insurance space alone insurers are collectively preventing millions of pounds worth of fraud a month, with fake claims against damage, theft, and loss being one of the primary methods combatted, as well as others at the front end such as ghost broking.
Eye-Opening Statistics on Insurance Fraud
To put a stat to it, in 2022 alone insurers detected over 70,000 fraudulent claims which were estimated at over a billion pounds, and that is JUST the claims side!
The Role of Technology in Combatting Insurance Fraud
Technology plays a huge role in what modern businesses do to safeguard both themselves and their customers against fraud, with insurance being no exception to that.
Analysing Data to Make Informed Fraud Prevention Decisions
Speaking with some of the brightest lights in the sector’s battle against fraud I learned that insurers in particular are looking at options across platforms like SIRA (a very popular database tool by Synectics Solutions), FRISS, and Shift, as well as device risk and recognition offerings from the big three of Lexis Nexis,Experian and TU.
The Importance of Data Sharing in Fraud Prevention
While there are pros and cons of each, insurers continue to seek out the best fit in terms of capability and commercial terms. One size doesn’t fit all but with there being an increasing amount of technology options covering every angle from the sale of policies through to claims, this is great news for the sector.
Embracing Technology and Data in the Evolving Insurance Landscape
Hand in hand with technology comes the means to analyse key data sets and make informed decisions. Products from SSL or Shift tech are highly rated and popular, with a big mover and shaker at present being clear speed which is similar to voice stress testing.
Data sharing is also a fundamental part of fraud prevention and despite competition, insurers come together to proactively tackle threats. In the general insurance arena, the IFiHUB was launched as a joint venture between the IFB (Insurance Fraud Bureau) to push forward the evolution of how insurers can embrace technology through a platform that hosts fraud and suspected fraud data in real time. This is used by many of the top UK insurance providers and IFB members including Markerstudy, Ageas, and Allianz.
Insurance is an ever-evolving landscape with technology and data being at the forefront of everything modern businesses do to get ahead of the competition and protect themselves against fraud threats.
Partnering with Industry Leaders for Fraud Prevention and Technology Solutions
As a leading specialist in Technology and Insurance recruitment, we have the pleasure of supporting some of the biggest names in the UK and Global insurance sectors in both operations and technology. If you are looking to hire the best established, and up-and-coming talent in the market please get in touch, we’d love to support you.
