'Connected data is transforming the fight against fraud': New report warns AI is fuelling a major rise in insurance fraud
AI is driving a rise in fraud – but it can also be used to shut down scams.
A new report from insurance giant Zurich and AI analytics experts at Quantexa reveals that artificial intelligence is responsible for 20% of fake insurance claims, with complex networks of seemingly unrelated false claims allegedly orchestrated using generative AI. According to the analysis, organized crime rings are leveraging AI to create fake evidence for non-existent incidents, driving a significant increase in insurance fraud.
The study, which examined a wide range of scams including crash for cash and serial claimants, identified complex patterns of fraudulent behavior, with repeated elements flagged for investigation. Using AI as both a tool for creating fake claims and as a means to detect patterns and highlight criminal activity, the technology is transforming both criminality and detection in the insurance industry.
In 2025, £1.34 billion in fraudulent claims were made, with £17.9 million detected through the use of advanced analytics and AI by Zurich UK. This represents a 22% increase in fraudulent claims from 2022, with 4,359 fraudulent claims uncovered in motor, property, and casualty insurance portfolios. Commenting on the findings, Scott Clayton, Head of Claims Fraud at Zurich UK and Chair of IFB, emphasized the growing sophistication and organization of insurance fraud, driven by criminal networks constantly adapting their tactics.
He highlighted the role of connected data in transforming the fight against fraud, enabling the exposure of hidden relationships, identification of organized networks, and protection of honest customers from bearing the financial burden of criminal activity. Zurich UK has become the first insurance company in the UK to integrate data from various sources, including Companies House, Equifax, industry intelligence, and the Insurance Fraud Register, providing a more comprehensive view of claims and facilitating the identification of crucial connections and information.
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