Insurers Combat Rising AI Fraud with Homegrown Detection Tools

• •50% of insurers use homegrown AI tools to detect fraud, alongside third-party solutions.
• •98% of insurers agree that AI editing tools are increasing fraud risk.
• •76% of insurers report that altered claims submissions have become more sophisticated.

Insurers are increasingly using homegrown AI tools to combat the rise of AI-driven fraud, particularly deepfakes and manipulated media. According to the Verisk State of Insurance Fraud study, 50% of insurers have developed their own AI detection systems, while 65% utilize third-party solutions. The study reveals that 98% of insurers acknowledge that AI editing tools are contributing to increased fraud, with 99% reporting encounters with manipulated documentation. Insurers are responding by enhancing training and guidance for claims adjusters. The sophistication of altered claims submissions has escalated, with 76% of insurers noting this trend over the past year. Younger consumers are more likely to view minor edits as acceptable, complicating the fraud landscape. The urgency for insurers to adapt their systems is emphasized as the threat evolves faster than existing detection capabilities.