Aite Group research reveals that the customary methods of fighting traditional fraud are not enough to combat new, more sophisticated fraud schemes
Boston, MA (July 27, 2017) — A new Aite Group report, Fighting Emerging Fraud Schemes With Data and Artificial Intelligence, explores the types of fraud that carriers are encountering and the technology that is available to help them combat it. Aite Group’s research shows that fraud is a staggering issue due to not only its one-time monetary cost but also the long-term investment necessary to fight it as fraudsters deploy more sophisticated strategies to find new vulnerabilities.
“The expense is not just a factor of more fraud; it’s a matter of spending money to investigate fraud and diverting resources from other functions that are pressured to increase revenue,” says Aite Group senior analyst Jay Sarzen. “But this gets magnified when carriers are forced to take rate to make up for fraud losses. Given how competitive the distribution landscape has become, this is not an optimal approach to solving the problem,” he says.
Technological shifts have enabled sophisticated fraud schemes, but technology can also help carriers fight back.
Fraud is one of the most critical issues facing global P&C insurance carriers today, not only because of the staggering monetary cost but also because those committing fraud are constantly changing their tactics. In order to keep up in the fight against fraud, carriers must be able to access and deploy the appropriate technology.
This report explores the types of fraud carriers typically face as well as the technology that is available to them and profiles the following firms: BAE Systems, Click-Ins, Digital Recognition Network, DXC Technology, FICO, FRISS, Futusome, Giact, Infinilytics, Intellect Seec, iovation, LexisNexis Risk Solutions, RSA, SAS, SmartContract, Synectics, ThreatMetrix, and TransUnion. It is based on 26 Aite Group interviews conducted between March 2017 and June 2017 with industry practitioners at insurance carriers and innovators at technology vendors.
This 42-page Impact Report contains one figure and two tables. The report is based on 26 Aite Group interviews conducted between March 2017 and June 2017 and focuses on shifting customer preferences, the rising cost of fraud, and the technologies carriers can use to protect themselves and their customers.
Click here to purchase the report or to download the table of contents from Aite Group.
About Aite Group
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us at www.aitegroup.com.
Source: Aite GroupTags: Aite Group, Artificial Intelligence (AI), fraud, FRISS, impact report, LexisNexis Risk Solutions, RSA, SAS