Insurance fraud

Insurance (Russian market)

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2024: Global IT Insurance Fraud Detection Market Costs Reach $5.34 Billion for the Year

At the end of 2024, the global market for fraud detection in insurance amounted to $5.34 billion. More than 40% of global spending was in the North American region. Such data are provided in a Fortune Business Insights study, the results of which were published on November 20, 2025.

The sector in question is showing sustained positive dynamics driven by a number of factors, including an increase in fraudulent incidents, an increase in digital transactions, tougher regulatory requirements, and the introduction of new and improved technologies such as AI-based automation and cloud computing.

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Фото: Freepik

Analysts point out that attackers are increasingly using complex fraudulent schemes that lead to significant financial losses for insurers. We are talking about the creation or staging of insured events (for example, arson of property or imitation of an accident in order to receive a payment), overstating the amount of damage (inclusion in the act of damage not related to the incident, or providing false information), etc. Attackers are adopting AI tools to falsify documents and create deepfakes.

At the same time, insurance companies are also actively introducing AI tools to combat fraudsters. Neural networks are capable of processing huge amounts of heterogeneous information with high efficiency. By analyzing data on insurance claims in real time, AI algorithms make it possible to identify anomalies and suspicious actions that may indicate potential fraud. In addition, AI is able to detect signs of falsification in various documents. Using predictive AI-based modeling, insurance companies can more accurately identify unscrupulous customers, reduce financial losses, and speed up decision-making. In general, AI improves operational efficiency, saves time on investigations, reduces costs and improves security in the insurance sector.

On the other hand, the study authors point to certain restraining factors. First of all, these are problems with the quality and availability of data. Silently storing information about insurance policies, claims, bills and customers makes it difficult to create a single, reliable platform to detect fraud. Inconsistent and incomplete datasets complicate modeling, reducing predictive analytics accuracy.

By deployment model, the market is segmented into cloud and on-premises solutions. In 2024, the largest revenue was shown by systems of the first type - $4.39 billion. Cloud platforms provide flexibility and scalability and help reduce IT costs. By type of fraud, criminal schemes are distinguished with claims, personal data, payments and accounts, statements, etc. The claims fraud segment dominates with $2.54 billion. From a geographical point of view, North America leads, which accounted for 43.1%, or $2.3 billion. Major industry players on a global scale are:

• Verisk Analytics;
• LexisNexis Risk Solution;
• DXC Technology;
• Shift Technology;
• IBM;
• SAS Institute;
• Experian;
• Fico;
• BAE System;
• Comply Advantage;
• Feedzai;
• Idfy;
• Clari5.

In 2025, the insurance fraud detection market is expected to reach $6.46 billion. Fortune Business Insights analysts believe that in the future, the CAGR will be about 23.7%. Thus, by 2032, costs may increase to $28.7 billion.^[1]

2023: The amount of damage from the actions of insurance fraudsters in Russia for the year decreased by 10.81% to ₽3,3 billion

The All-Russian Union of Insurers recorded a decrease in the amount of damage from fraudulent actions in the insurance sector by 10.81% to ₽3,3 billion at the end of 2023. Statistics are presented in July 2024.

According to TASS, the number of applications sent by insurance companies to law enforcement agencies decreased by 14.29% - from 7.7 thousand to 6.6 thousand applications for the same period.

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Фото: Freepik

Vice-President of the All-Russian Union of Insurers Sergei Efremov noted that the main share of fraudulent actions, about 90% of cases, falls on the car insurance segments of CASCO and OSAGO.

For the period from 2018 to 2023, insurance companies sent more than 59.5 thousand statements of illegal actions to law enforcement agencies with a total amount of damage of ₽31,4 billion. The indicators demonstrate the high activity of the industry in countering fraud.

Statistics from the past six years show a steady decline in insurance fraud. The number of applications decreased by 51.11% from 13.5 thousand in 2018. The amount of damage caused decreased by 50.75% from ₽6,7 billion.

Director of Business Development at Zetta Insurance"" Viktor Pletnikov revealed the main fraud schemes in car insurance. He said that attackers purchase damaged vehicles at the minimum cost in the secondary market, after which they issue an insurance policy at the maximum possible assessment.

The scheme includes insurance for cars with already existing mechanical and technical defects. After receiving the policy, critical damage to the vehicle is staged to receive a full insurance payment. Fraudsters deliberately choose monetary compensation instead of repairs.

Insurance companies counteract such schemes by strengthening pre-insurance expertise using specialized information bases. Special attention is paid to checking the technical condition of cars and their market value.

Attackers often use damaged parts in several fraudulent episodes without planning to restore the vehicle. The purpose of the criminal scheme is to receive funds through multiple presentation of the same damage to different insurers.^[2]

2020: Over 10 thousand statements on the facts of fraud sent insurers to the police

According to the All-Russian Union of Insurers, in 2020, insurance companies sent more than 10 thousand applications to law enforcement agencies with signs of insurance fraud, while the amount of claimed damage amounted to more than 5.5 billion rubles. This became known on March 29, 2021.

Most of the applications for OSAGO were sent - 89% - while the amount of claimed damage amounted to more than 2.7 billion rubles. For other types of insurance, the number of sent applications is significantly less and amounted to 11% of the total number of sent applications to law enforcement agencies, while the amount of claimed damage for them amounted to 2.8 billion rubles.

The efforts that are jointly made by the state, law enforcement agencies, the Central Bank of Russia, as an industry regulator and insurance companies, are bearing fruit. In some regions, which are especially affected by the actions of insurance fraudsters, they have introduced financial education programs for the population on insurance issues, including those related to countering insurance fraud. These programs help citizens to better understand financial issues and not become a victim of unscrupulous businessmen. We have launched unified information bases (Bureau of Insurance Histories and AIS OSAGO), which allow you to quickly exchange information between all market participants. The security services of insurance companies have been strengthened, which identify some of the potential fraudsters even before the conclusion of the insurance contract.

As Andrei Krupnov, head of the committee for quality control of products and services in the field of insurance of the Association of Consumers of Russia, notes, many innovations in the field of combating fraud come from the technological sphere:

Special big data processing tools allow you to trace connections between participants in various insurance contracts and insured events (including insurers, victims, witnesses, agents, etc.) and identify contacts that simply cannot be seen with the naked eye. In addition, scoring systems allow you to assess the potential client's tendency to fraud and weed it out at the stage of concluding an agreement (or, if this is impossible, as in the case of OSAGO, take it under special control). Risk monitoring and predictive analytics systems allow you to catch the moment when a "white" client turns into an accomplice of fraudsters or isolate a suspicious one from the general flow of insurance cases and give an appropriate warning to employees of the UK. Moreover, such analytical tools work even on the newest fraud schemes, thus saving insurers from financial losses.

In 2020, compared to 2019, the number of applications to law enforcement agencies decreased by more than two thousand, which is associated with the pandemic, including measures aimed at countering insurance fraud. In addition, according to the President of the Russian Union of Auto Insurers Igor Yurgens, court appeals decreased by 64%, as there is a pre-trial procedure for circulation and many issues are resolved through the Financial Ombudsman.

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