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Tackling Opportunistic Fraud in Touchless Claims

Dan Gumpright, at BAE Systems discusses the impact on the tendency of insured individuals to commit fraud with the move to low touch and touchless claims in Property & Casualty insurance.

Online tools, apps and chatbots all allow insurance customers to submit claims quickly and easily. It’s also great for insurers: lower processing costs and improved customer satisfaction often follow. Many customers no longer want to deal with a live person and expect everything to happen at the click of a button. 
    
It is generally accepted that organised fraud will rise as a result of the touchless claims environment. But ignoring the effect of reduced human interaction and its impact on opportunistic fraud would be particularly unwise, especially with profitability already on the line and fraud on the rise.
 
The upcoming move to low-touch and touchless claims calls for a far more sophisticated fraud detection approach with earlier risk profiling – at the point of policy inception, quote as well as point of claim. Fraud detection technologies such as Social Network Analytics and the convergence of this with big data and machine learning will be fundamental in identifying fraud earlier, and how these trends will change over time.
 
We have been working with insurers across the global to detect and prevent both organised and opportunistic fraud in the Property and Casualty space with our NetReveal solution for over 15 years.