A new note from Reinsurance Group of America (RGA) says artificial intelligence (AI) enables fraud but also powers tools for detecting fraudulent activities. They urge disability insurers to understand both the threats and the available solutions.
Entitled The Dual Role of Artificial Intelligence in Disability Insurance: A boon and a bane, the note says disability insurers in particular face a growing challenge as fraudsters work to exploit AI, using it to create convincing documentation and manipulated data which is increasingly difficult for traditional fraud detection efforts to recognize.
Synthetic identities
“AI algorithms can generate synthetic identities, complete with fabricated medical histories and employment records, to falsely claim disability benefits. These sophisticated forgeries can deceive even the most diligent human reviewers,” the note states. They also warn that AI is being used to understand the algorithms that drive automated claims systems.
“For example, they might submit multiple claims with slight variations to see which ones get approved, refining tactics over time to maximize chances of success.”
At the same time, they say AI is being trained on historical claims data to recognize common characteristics of fraudulent claims. Disability insurance companies are also using the technology to enhance verification processes.
They conclude, saying combatting AI-enabled fraud requires a collaborative effort among insurers, technology providers and regulators. Along with information sharing, “continuous and collective investment in AI research and development is essential,” they write.
