With a growing share of insurance executives viewing generative artificial intelligence as a tool for streamlining and improving functions like fraud detection, Deloitte predicts that AI technologies could save the property/casualty insurance industry tens of billions of dollars in the next few years.
Deloitte wrote in a report that by implementing AI-driven technologies across the claims life cycle and integrating real-time analysis from multiple modalities, P/C insurers could reduce fraudulent claims and save between $80 billion and $160 billion by 2032. Insurers that integrate multimodal capabilities using AI and advanced analytics could generate potential savings of 20% to 40%, depending on the implementation, type of insurance, and sophistication of fraud detection systems, according to the report.
“Multiple techniques such as automated business rules, embedded AI and machine learning methods, text mining, anomaly detection, and network link analysis could score millions of claims in real time,” Deloitte said in the report. “Combining data from various modalities, such as text, images, audio, and video, could help identify patterns and anomalies and enhance the investigative process by reducing false positives, increasing detection rates of fraudulent claims, and saving on costs associated with fraud investigations.”
Soft fraud, which involves inflating a legitimate claim and accounts for 60% of all incidents, currently has a detection rate between 20% and 40%,...
With a growing share of insurance executives viewing generative artificial intelligence as a tool for streamlining and improving functions like fraud detection, Deloitte predicts that AI technolog...