Business Wire

FRISS Fraud Study Shows the Impacts of COVID-19 on AI and Digitalization in Insurance

Share

In a recent study by FRISS, the global leader in AI-powered fraud detection software for insurers, the impacts of COVID-19 as well as long-term industry trends are highlighted. The study gathered input from nearly 500 insurance professionals worldwide and provides insight into topics such as fraud detection during a pandemic, data challenges, setting a fraud-fighting culture, the use of social media to combat fraud and more.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201109005743/en/

To view this piece of content from mms.businesswire.com, please give your consent at the top of this page.

FRISS Fraud Study Shows the Impacts of COVID-19 on AI and Digitalization in Insurance (Graphic: Business Wire)

The full report is here available as a free download

Rapid and sweeping changes in how insurers do business — and fight fraud — were well underway before COVID-19 erupted across the world. The pandemic has accelerated an already dizzying pace. AI and digitizing the insurance chain brings remarkable new potential to benefit insurance consumers. Yet fraudsters inevitably work to exploit emerging system gaps, continuing to drive up the cost of insurance for honest consumers.

Key findings of the fraud study include:

COVID-19 forced 65% of insurers to focus on digitalization

The global pandemic forced nearly two thirds of all insurance organizations to focus more on digitalization. Almost half had a focus on reducing costs, and about 30% actively increased their fraud checks. Preventing fraud is good for the business. Success depends on the ability to deeply enable a digital way of working. Low-risk claims can be put on a fast track in order to provide sincere customers with a moment of magic when it matters most. Nevertheless, the recent FRISS study found that the desire to move toward digitalized and straight-through processes is not yet met with action. Many respondents are still relying on the gut feeling of their staff and other manual methods for preventing and predicting fraud.

18% of all claims contain an element of fraud

Exactly how much fraud impacts the industry is always hard to pinpoint. The industry generally agrees fraud accounts for about 10% of all claims cost. However, the respondents to the survey on average believe 18% of all claims contain an element of fraud, inflation or misrepresentation. The top fraud schemes that saw an increase in popularity during COVID-19 are staged accidents and vehicle thefts, procedure billing or phantom services, and fake accidents occurring at people’s homes.

100% of insurers benefit from implementing fraud detection software

Eliminating fraud has a clear benefit to the loss ratio, and it’s the top reason respondents to the survey are willing to take on new initiatives. 60% points out that an improved loss ratio is the largest advantage of using fraud detection software. Furthermore, 49% says they benefit greatly from real-time detection. Evaluating claims in real time affords better customer service, which turns moments of misery into moments of magic. 48% is now getting ahead of emerging fraud schemes. Other advantages include better portfolio quality and improved investigator efficiency. Screening incoming customers in real time offers a better experience, increased loyalty and a higher quality book of business.

Proactively start fighting fraud

Topics like poor data integration, a lack of IT resources or the fear of false positives are still weighing on carriers’ minds. Industry thought leaders expect an increase in fraud over the next 12 months. As insurers drive digital change, it is important they remember to include fraud prevention as part of their digital toolkit.

We see insurers moving towards the real-time monitoring of risks and fraud and proactively monitoring policies and claims throughout the lifecycle, to make sure they can run a healthy portfolio. Let’s not wait for what Covid brings us, but proactively start fighting fraud. Honest customers deserve it.

More trends can be found in the complete 2020 Fraud Report

About FRISS

FRISS is 100% focused on automated fraud and risk detection for P&C insurance companies worldwide. Their AI-powered software solutions for underwriting, claims and SIU help 175+ insurers grow their business. FRISS detects fraud, mitigates risks and supports digital transformation. Insurers go live within 4 months, realize up to 10 times ROI and see an 80% increase in straight through processing of policy application and claims.

FRISS solutions help lower loss ratios, enable profitable portfolio growth, and improve the customer experience. For more information, visit friss.com or @FRISS_com.

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Ruud van Gerwen
Head of Global Marketing at FRISS
ruud.van.gerwen@friss.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Stephen Stonberg appointed interim CEO of Bittrex Global17.5.2021 19:14:00 CEST | Press release

The Boards of Directors (the “Boards”) of Bittrex Global GmbH (Vaduz, Liechtenstein) and Bittrex Global (Bermuda) Ltd (Hamilton, Bermuda) have confirmed that Tom Albright is stepping down from his role as CEO of both companies effective today. The Boards are grateful for the contributions Tom has made. Stephen Stonberg, current CFO and COO of Bittrex Global, has been appointed by the Boards to serve as interim CEO, to oversee management of the Companies. “Tom has brought key leadership as Bittrex Global has grown to serve the crypto marketplace,” said Bill Shihara, Co-Founder Bittrex, Inc. “Tom has also helped guide the company through a period of significant growth and change within our sector”. “We are incredibly pleased that Stephen Stonberg will be leading Bittrex Global as interim CEO,” said Shihara. “Stephen has served as CFO and COO since February 2019, and has a deep understanding of our business, and has over 25 years experience in the financial services sector, and held leade

Lumen Metabolic Health Device Now Peer-reviewed17.5.2021 18:57:00 CEST | Press release

Lumen , a health tech company and the creators of the world's first portable metabolism measurement device, has officially been peer-reviewed and published in the Interactive Journal of Medical Research (I-JMR). In collaboration with San Francisco State University, Lumen has validated an ongoing study launched in 2020, which shows the validity of Lumen® to detect changes in metabolic fuel utilization in a comparable manner with a laboratory standard metabolic cart, providing the ability for real-time metabolic information for users under any circumstances. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210517005774/en/ Lumen now peer-reviewed (Photo: Business Wire) Developed through years of scientific testing and validation, Lumen is the first handheld, portable device and app that measures your metabolism in real-time with just your breath. The methodology behind the peer-reviewed validation of Lumen The study compares the

Orbia Announces Cash Tender Offer for Its Outstanding Notes Due 202217.5.2021 15:46:00 CEST | Press release

Orbia Advance Corporation, S.A.B. de C.V. (“Orbia”) (BMV: ORBIA) announces that it has commenced an offer to purchase its outstanding US$750,000,000 principal amount of 4.875% Senior Notes due 2022 (CUSIP/ISIN: 59284BAB4; P57908AD0 / US59284BAB45; USP57908AD01) (the “Securities”) pursuant to an offer (the “Tender Offer”) to purchase for cash any and all of the Securities on the terms and subject to the conditions set forth in the offer to purchase, dated May 17, 2021 (the “Offer to Purchase”) and the related notice of guaranteed delivery (the “Notice of Guaranteed Delivery” and, together with the Offer to Purchase, the “Offer Documents”). The Tender Offer will expire at 5:00 p.m. (New York City time) on May 21, 2021, unless extended (such date and time, as the same may be extended, the “Expiration Date”). Securities validly tendered may be withdrawn at any time at or prior to 5:00 p.m. (New York City time) on May 21, 2021, unless extended, but not thereafter. The settlement date of the

monday.com Announces Filing of Registration Statement for Proposed Initial Public Offering17.5.2021 14:45:00 CEST | Press release

monday.com Ltd. (“monday.com”), a work operating system (Work OS) where organizations of any size can create the tools and processes they need to manage every aspect of their work, announced today it has filed a registration statement on Form F-1 with the Securities and Exchange Commission (the “SEC”) relating to the proposed initial public offering of its ordinary shares. The number of shares to be offered and the price range for the proposed offering have not yet been determined. monday.com intends to list its ordinary shares on the Nasdaq Global Select Market under the ticker symbol “MNDY.” Goldman Sachs & Co. LLC and J.P. Morgan will act as lead book-running managers for the proposed offering, with Allen & Company LLC and Jefferies acting as joint book-running managers. William Blair, Piper Sandler, Oppenheimer & Co., Canaccord Genuity, Cowen and Needham & Company will act as co-managers for the proposed offering. The offering will be made only by means of a prospectus. Copies of t

Personalis, Inc. to Present at Biomarkers Week Online 202117.5.2021 14:01:00 CEST | Press release

Personalis, Inc. (Nasdaq: PSNL), a leader in advanced genomics for cancer, today announced that the company will present at Biomarkers Week Online 2021. The presentation, titled “ImmunoID NeXT Platform® for comprehensive tumor immunogenomics and advanced biomarker discovery,” will describe the Personalis universal cancer immunogenomics platform, ImmunoID NeXT™. Erin Newburn, MS, PhD, will present for Personalis. Dr. Newburn will provide an overview of the platform, which combines highly sensitive, exome-scale DNA and RNA sequencing with advanced analytics to provide a multidimensional view of the tumor and the tumor microenvironment (TME) from a single sample preparation. Dr. Newburn will review a case study in a cohort of 51 late-stage melanoma patients that demonstrates how the integration of neoantigen burden, HLA LOH, and Antigen Presentation Machinery (APM) mutational data formed a composite biomarker that more accurately predicted response to checkpoint blockade than other marker

Bentley and ESI Group Work Together to Refine the Flying Spur Through Sustainable Design Process17.5.2021 14:00:00 CEST | Press release

Regulatory News: ESI Group (Paris:ESI), a global player in virtual prototyping for industries, worked hand in hand with Bentley on the optimization of one of the world’s finest four door sedan, the Flying Spur. Thanks to virtual prototyping, teams have been able to eliminate noise, vibration and harshness (NVH) and reduces physical parts in test phase. Advanced virtual design processes have been used in the testing and production cycles of the third Flying Spur generation. Thanks to ESI’s virtual prototyping, a weight optimization program for the Flying Spur could be undertaken on 40 different components. The finely tuned process enabled acoustic tests for any airborne sounds filtering into the cabin to be completed, as well as any impact from the structure itself, such as tire noise. This ensured the correct soundproofing materials were deployed in the right locations around the vehicle, so passengers can enjoy the quietest cabin experience possible. These cutting-edge techniques are

Vecima Networks and Vector Technologies Enable Gigabit Services for Liberty Global17.5.2021 14:00:00 CEST | Press release

Liberty Global (NASDAQ: LBTYA, LBTYB and LBTYK), one of the world’s leading converged video, broadband and communications companies, continues the rollout of Remote PHY (R-PHY) technology in Europe, with the support of Vector Technologies and Vecima Networks Inc. (TSX: VCM). The partnership will start Liberty Global on a path to delivering 10Gbps connectivity throughout their European footprint. The jointly developed, next-generation R-PHY solution packages Vecima’s Entra ERM112 RPD (Remote PHY Device) module in Vector Technologies’ ACCERON Compact R-PHY Node. The fully interoperable solution accelerates deployment of Distributed Access Architecture (DAA) in Liberty Global's access network and enables Liberty Global to fulfil their 10G network roadmap, delivering the next great leap in speed, capacity, and low latency. “The partnership with Vecima and Vector Technologies was a natural extension of our ongoing business activities, mainly focused on our mission to create the next-generat

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom