Study: Insurers Suspect Rise In Fraudulent Claims Since Start Of Pandemic

Insurance professionals’ suspicions about fraudulent claims have increased during the pandemic as fraudsters have become more creative, according to a recent survey.

The survey by FRISS, a provider of fraud and risk detection solutions for property/casualty insurers, found that its 420 respondents in 2022 believe 20 percent of claims filed might contain fraud. That’s up from 18 percent in 2020.

‘Innovation and digitization are disrupting the insurance industry in good ways, setting a new norm that’s enabling the industry to be even more responsive to customers’ needs,’ said Triple-I CEO Sean Kevelighan in an introduction to the report. ‘Unfortunately, the acceleration of digital processes that began well before the pandemic also provides opportunities for fraud.’

In 2022, the top challenge reported by respondents was ‘Keeping up with fraudsters’ modus operandi’ -- a change from both the 2020 and 2018 surveys, in which ‘Internal data quality’ was deemed the biggest challenge.