Combatting Life and Disability Insurance Fraud

Life and disability insurance fraud can take many forms—and as an insurer, you may face these questions when identifying this type of crimes:

Can a claim be denied for false information on an application?
What happens when someone exaggerates a disability claim?
What happens when someone fraudulently changes a beneficiary?
How do insurance companies detect fraud either during the application or claim process?
Where should insurers focus their efforts to reduce life and disability insurance fraud?
How do criminals leverage artificial intelligence (AI) to commit life and disability insurance fraud?
How can insurer counter leverage AI to fight that fraud?

As insurance companies face the growing challenges and cost of life and disability insurance, fraudsters exploit gaps in applications, claims processes, identity verification, and beneficiary management to pursue payouts they don’t deserve. From material misrepresentation and forged documents to staged disabilities and identity theft, criminals leverage technology and Ai to devise schemes that drive up costs, delay legitimate claims, and erode trust with policyholders.

While you work to strengthen fraud detection efforts, NICB can help your employees identify suspicious activity, leverage data and build investigative skills.

Partner with NICB

Cost of Life and Disability Insurance Fraud on the Industry

5 Reasons Life Insurance Companies Should Care about Fraud

Large Financial Losses – Fraudulent life insurance claims can result in substantial payouts, directly impacting your company’s financial stability.
Higher Premiums for Your Policyholders – Fraud losses and investigation costs result in higher premiums for all your customers.
More Complex Application Processes – When you’ve worked to make the application process easier, fraud can lead you to add more underwriting steps and make online applications more complicated, slowing the buying process for clients.
Strain on Claims Operations – Investigating suspicious claims requires significant time and resources that could otherwise support and facilitate service to legitimate beneficiaries.
Loss of Trust – Life insurance depends on trust; fraud undermines confidence in your agents, company and the entire industry.

Eligibility

As NICB joins this growing fight against life and disability fraud, we welcome conversations with both new and existing members. Existing members can add these additional services to their membership. New members can join as associate members and will benefit from our robust training options, receive our intelligence products and gain access to our investigative resources.

Here to Help

If you would like more information on how NICB can help your company combat life and disability fraud, contact us to learn more.