Blog: AI fraud is becoming a broker problem, not just an insurer problem
AI-generated documents extend the risk of fraud beyond claims settlement to the application and quote stages. Oleh Petrivskyy, founder and CEO of Binariks, explains why insurance distribution needs its own authentication mechanisms and offers four low-cost steps brokers can start with now.
A broker receives a letter about a potential client’s loss history. The insurer’s logo is in place, the policy references look convincing, and the loss data is complete. It took ten minutes to create such a document, and no special skills were required. However, almost all of this year’s talk about AI fraud has been directed at insurers, not the broker who first receives the file.
Fraud has not disappeared from claims settlement. Now it appears at earlier stages as well – even during the
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