Fraud detection is a major challenge in the insurance industry, and being able to successfully mitigate fraud could have a positive impact on a company’s profit and loss statement. The industry is seeing an increasing number of transactions meaning that humans can no longer manually control all of them.
AI and Machine Learning algorithms can identify and highlight likely fraudulent claims. Since the insurance industry is data heavy, AI has the ability to uncover hidden correlations and patterns undetectable by humans. Algorithms are able to detect patterns to develop and progressively improve working models to help with data verification and claims processing.