Undetected fraud is responsible for generating between £4.6 billion and £10.4 billion of hard losses for the insurance industry every year. Despite the fact that numerous fraud detection measures have been implemented over the years – from operative questioning techniques to case reviews and private investigators – in 2019, the average value of a fraudulent insurance claim came in at £11,400 with an annual industry cost of around £1.3 billion. And with the pandemic creating hard times for all, current data indicates that 2020’s figures could be as much as 21% higher. Reducing these figures is in the interest of everyone, and artificial intelligence (AI) potentially holds at least part of the answer.
AI has an enormous remit, but in fraud prevention it is natural language processing (NLP) and automatic speech recognition (ASR) that have the potential to change the game. Because call centres are still seen as the soft target for fraud, with agents being faced with a constant barrage of sophisticated social engineering techniques.