November 19, 2021

A New Global Fraud Study Released

At the Global Fraud Summit on November 15, a new report was issued by the Coalition Against Insurance Fraud, created withtheir partners, IBM and Luxoft. (A copy of Terri O’Brien’s presentation can be found here.)

The report is the first global look at fraud in the industry. Unsurprisingly, globalized fraud is not a current priority for most. However, the issues facing fraud on the global scale are often the same as those on the national scale. For example, the report finds that:

  • Not sharing information is a significant barrier to fighting insurance fraud.
  • Respondents from North America experience ring activity related to property claims more than others. 

As well, the report summarizes that:

  1. Fraud fighters are very concerned about the impact of global fraud in the future.
    - Global insurance fraud might be seen as a low priority, but respondents are a lot more concerned about the future.
  2. There’s a lack of confidence in the tools, resources and knowledge organizations have in place to combat globalized insurance fraud.
  3. Most organizations are not prepared to fight fraud on a global scale.

At Équité Association, we were pleased to note that we are starting ahead of the global curve while remaining focused on national insurance fraud. For example, the study cited that “organizations with only domestic business collaborate more often with local organizations and less with foreign / international organizations” Équité already works with international law agencies in coordinated investigations. The study also notes that “using AI and data analytics to identify international fraud activity was ranked the most beneficial.” Équité has data and analytics at the core of its 3-year strategy and sees the benefit in combining technology and investigations for the benefit of all members.

You can find a copy of the study here.  Feel free to let us know your thoughts!