More insurance fraud detected in 2024, rise of AI visible

Fraud with Artificial Intelligence

There were more warnings about cyber risks last year. The Association suspects that this is due to the advance of artificial intelligence (AI) and other widely accessible digital possibilities. Insurers are seeing an increase in sophisticated forms of fraud in digital processes and cybercrime. This poses a risk. At the same time, AI is also being used by insurers, precisely to detect and combat fraud.  

Insurers have significantly expanded their approach to fraud in recent years. As a means against scams, insurers are increasingly sharing knowledge and information among themselves. If fraud is proven, the insurers take measures. In addition to rejecting the insurance or claim requested, insurers may decide to terminate the policy, recover the investigation costs, or report it to the police. Insurers can also decide to include the details of a fraudster in the joint warning system, the so-called External Reference Register (EVR). Last year, insurers included information about 3,567 frauds in the joint warning system. 

Managing Director of the Dutch Association of Insurers, Richard Weurding: "We are increasingly seeing the relevance of AI, because many threats are cyber-related. Exchanging knowledge and skills remains extremely important, to prevent criminals from trying the same 'tricks' at different insurers. The fight against fraud is necessary to tackle abuse and to prevent customers who are acting in good faith from paying too much premium unnecessarily. Insurance fraud is a crime and if you are caught, the consequences are great. An insurer usually also recovers the investigation costs and insurers can report it to the police. "