Artificial Intelligence (AI), and more specifically Generative AI (GenAI), have captured the attention of businesses and consumers alike. For insurers, these technologies are supporting and improving processes such as claims and underwriting, among many others, that are critical to ongoing business success. Artificial intelligence is driving efficiency gains and helping insurers bridge the talent gap being created by a disparity in the number of employees leaving the industry versus those entering it. These powerful solutions are helping insurers see the big picture, make the best decisions possible, and shave points off of combined ratios.
At the same time, the very same tools that are delivering tremendous benefits to the insurance industry are also creating a whole new set of risks. Bad actors are using AI and GenAI to invent new fraud schemes. They are using these technologies to make existing schemes harder to detect. And easy to use and publicly available tools are allowing fraudsters to create convincing photos, documents and other “evidence” required to establish illegitimate policies and falsified claims. The age of the “insurance deep fake” is upon us.
