Fraud in Life Insurance: Technology Is the Shield

More than 80% of life and annuity carriers report that fraud has increased over the last two years, according to the latest Aite Group report

Boston, MA (Feb. 7, 2019) – Life and annuity carriers struggle to mitigate fraud, with the primary issue being detection. Analytics tools, including the use of artificial intelligence and machine learning, have advanced the detection of fraud, but life and annuity carriers have been committed to developing internal tools that limit their ability to mitigate fraud to a large scale. Aite Group’s latest report, Fraud in Life Insurance: Technology Is the Shield, examines some of the key trends driving fraud as well as the different types of fraud life and annuity carriers are detecting today.

“Through the qualitative interviews that we conducted, we found that many carriers fear that fraud will have exponential growth rates in the years to come, driven by market trends centered on digital distribution, an aging population, and increased healthcare costs,” explains Samantha Chow, senior analyst at Aite Group.

This new report details some of carriers’ biggest fraud concerns as well as their strategies and tools to mitigate fraud. It is based on 35 online and face-to-face interviews from April 2018 to October 2018 with executives at U.S. life insurance carriers as well as at technology vendors and state regulating agencies within the United States.

To request a press copy of this report, please contact [email protected].

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 Group