Insurers Prioritize Claims Over Underwriting in Anti-Fraud Tech Use

A new survey of U.S. insurers highlights a strong industry focus on using technology to combat claims fraud, with far less attention given to other areas like underwriting or internal fraud. Commissioned by analytics provider SAS and the Coalition Against Insurance Fraud, the study found that 88% of insurers are using some form of anti-fraud technology, with nearly all focused on claims fraud detection and investigation.

Among the most common tools in use are automated red flags or business rules (64%), fraud scoring systems (60%), and link analysis tools (57%), which help detect suspicious activity by automating repetitive tasks. However, fewer insurers are embracing more advanced capabilities like predictive modeling (40%) and geographic data mapping (23%). When it comes to internal fraud or application fraud detection, fewer than half are applying tech-based solutions.

Insurers showed interest in expanding their technology footprint, particularly with predictive modeling (33%) and text mining (31%) over the next one to two years. However, data quality and integration challenges remain a major hurdle. Legacy systems, fragmented data silos, and inconsistent record-keeping continue to limit how effectively these technologies can be applied across all fraud detection areas.

The findings suggest that while the industry is making strides in using technology to combat claims fraud, there’s untapped potential in applying similar tools to prevent fraud earlier in the policy lifecycle—such as during underwriting or risk assessment.