Insurance Fraud: Rethinking Approaches in the Digital Age

Report Summary

Insurance Fraud: Rethinking Approaches in the Digital Age

Increased fraud loss threatens to dilute the benefits digitally transacting customers could bring to carriers.

 
Manoj Upreti
Strategic Advisor
Michael Trilli
Director, Insurance Practice
Stuart Rose
Strategic Advisor

Boston, September 21, 2021 – The recent mass adoption of digital platforms and processes, driven by the pandemic, is a double-edged sword for insurers. It helps improve customer experience, increases speed of policy issuance or service, and reduces cost. But it also expands the means and opportunities for fraudsters to steal identities and commit financial fraud. As a result, insurers need to make sure their fraud mitigation and identity verification capabilities appropriately guard against fraudulent activities.

This report measures increases in digital activity and corresponding rising fraud incidents during the first year of the pandemic and analyzes the impact of those trends on the insurers. It also looks at fraud solutions and their adoption as well as the benefits of a multilayered approach to fraud management. It is based on a May 2021 online quantitative survey, commissioned by LexisNexis Risk Solutions and conducted by Aite Group, of 132 subject-matter experts and decision-makers of fraud prevention strategies at U.S. insurance carriers with at least US$500 million in 2020 premium revenue.

This 23-page Impact Report contains seven figures and four tables. Clients of Aite-Novarica Group’s Health Insurance, Life Insurance, or Property & Casualty Insurance service can download this report, the corresponding charts, and the Executive Impact Deck.

Download table of contents

This report mentions LexisNexis Risk Solutions.

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