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Insurers Turn to AI to Fight Fraud

More insurance companies are looking toward machines to help deal with often basic scams.
July 3, 2018

The FBI estimates that insurance fraud costs companies and customers more than $40 billion per year, excluding medical insurance fraud. These costs add between $400 and $700 per year to homeowners, auto, and health insurance. Some say there are not enough investigators to reduce fraud, but insurers say artificial intelligence (AI) may have a role to play. AI can be used by insurers to pick out inconsistencies and unusual patterns. For many insurance companies, it is not so much a competition but a way to more effectively triage claims to let humans dive deep into the ones that need more examination.

“More and more insurance companies are looking toward machines to help deal with often basic scams, thereby freeing up investigators for more complicated aspects for investigations that only humans can handle,” said James Quiggle, director of communications at the Coalition Against Insurance Fraud, an industry group.

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