Insurance companies are facing a slew of challenges. Already plagued by inflation and haunted by the climate crisis, they're also in an arms race against fraud.
The day-to-day of this computational war might not be as dramatic as Alan Turing standing in front of a 7-foot-wide computer to decipher the Enigma code. But the insurance-fraud battle follows the same premise: As fraudsters use new tech, so, too, must the detectors.
Many insurers agree that AI, more than any other technology, will be the game changer in this space over the next five years.
The driving force behind this race is money, and lots of it. Of the $2.5 trillion Americans pay into the insurance industry each year, the Coalition Against Insurance Fraud estimates that insurers pay out $308.6 billion of it on fraudulent claims. That means 12% of what customers in the US pay is funneled to dishonest claimants.