Insurance fraud is a widespread problem that has significant financial consequences for both consumers, businesses and the insurance industry. The FBI estimates that fraud costs the average family an additional $400 to $700 a year in premiums. The Coalition Against Insurance Fraud indicates that fraud costs businesses and consumers over $308.6 billion a year. To detect and prevent fraud, insurance companies often use technologies such as predictive modeling, link analysis, and artificial intelligence. iCognative™ technology offers a more definitive solution, it provides
insurance companies with valuable information about claimants’ involvement in fraud without intrusive questioning or invasive testing.
Insurance fraud can be divided into two categories: hard fraud and soft fraud. Hard fraud occurs when a policyholder deliberately destroys property with the intent of collecting on the insurance policy. Soft fraud, which is more common, occurs when a policyholder exaggerates an otherwise legitimate claim or intentionally omits or lies about the information to obtain a lower premium. Soft fraud is often considered a crime of opportunity.
iCognative™ is a cutting-edge technology that has been proven to effectively detect and deter fraudulent activity by customers, agents, and even internal fraudsters.
By mandating iCognative™ tests in cases of suspected fraud, insurance companies can verify the authenticity of documentation and personal statements, effectively preventing scammers from obtaining undeserved financial gain.