'Connected data is transforming the fight against fraud': New report warns AI is fuelling a major rise in insurance fraud

Date:
Tue, 10 Nov 2026 11:31:12 +0000

Description:
AI is driving a rise in fraud but it can also be used to shut down scams.

FULL STORY
Generative AI has been employed by organized crime rings to create fake evidence for non-existent incidents -- AI has been driving a worrying rise insurance fraud, new analysis by insurance giant Zurich and AI analytics experts at Quantexa has claimed, with complex, organized crime rings have employed generative AI to make to fabricate supporting evidence in 1 in every 5 fake claims.

Scams as diverse as crash for cash and serial claimants were intelligently analyzed with repeated elements flagged for investigation. AIs use as both a generative tool for fakery and as a tool to detect patterns and highlight criminality demonstrates how the technology is taking criminality and detection into a new era. The analysis has so far led to 17.9 million in fake claims detected, a small number when compared to the 1.34 billion of fraudulent claims made in 2025.

Fighting fraud

Incredible volumes of fraudulent insurance claims have been
detected over the past 12 months. Zurich UK found 109.3 million in total
of faked claims, with 17.9 million of that identified using advanced
analytics and AI. Some 4,359 fraudulent claims were uncovered, in motor, property, and casualty insurance portfolios. Claims identified as fraudulent increased 22% from 2022s figure of 3,562 claims to 4,359 in the past 12 months.

Insurance fraud in the UK is becoming more sophisticated, more organized and increasingly technology-enabled," noted Scott Clayton, Head of Claims Fraud
at Zurich UK and Chair of IFB. "Criminal networks are constantly adapting their tactics, whether that's staged accidents, ghost broking, fabricated claims or the use of AI-generated evidence.

Explaining how AI has helped combat the 109.3 million of fraud uncovered in 2026, he added Connected data is transforming the fight against fraud,
helping us expose hidden relationships, identify organized networks and protect honest customers from footing the bill for criminal activity.

This appears to be an industry-leading combination of advanced analytics and human judgement by specialist investigators to tackle what is considered a rapidly evolving threat.

Clayton says that Zurich is the first insurance company in the UK to unify data from Companies House, Equifax, industry intelligence and the Insurance Fraud Register to give us a much richer picture across every claim. That
helps us identify crucial connections and information that might otherwise be difficult to spot.

Link to news story: https://www.techradar.com/pro/security/connected-data-is-transforming-the-figh t-against-fraud-new-report-warns-ai-is-fuelling-a-major-rise-in-insurance-frau d

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