Fraud Detection in Insurance: How AI is Preventing Scams

Introduction Insurance fraud is a significant challenge faced by insurers worldwide, costing billions of dollars annually. Fraudulent claims not only impact insurance companies but also lead to higher premiums for policyholders. Traditional fraud detection methods, while effective to some extent, often fall short in identifying sophisticated scams. This is where Artificial Intelligence (AI) is revolutionizing the insurance industry by enhancing fraud detection and prevention mechanisms….