Rapid growth in new markets can create challenges for insurers
Rapid growth in new markets often leads to higher claims frequency and severity. As insurers bring in large numbers of new policyholders, they face greater exposure, especially in the beginning. Fraudsters may target insurers entering new regions, exploiting gaps in controls and oversight, which can result in more frequent and higher-value fraudulent claims. To address these challenges, insurers are increasingly turning to artificial intelligence (AI), which helps close these gaps by analyzing vast volumes of data, spotting hidden patterns, and adapting quickly to new market dynamics to flag suspicious activity early.
Solving the challenges of rapid growth with an AI-based solution
As our client expanded operations from two states into a third, rapid growth in the new market led to increased claims severity and frequency. This created an urgent need for a stronger fraud detection strategy.
Shift partnered with the client to develop tailored fraud detection scenarios across both claims and underwriting. These scenarios were designed to flag potential misrepresentation, fraud, and high vehicle-to-driver ratios, enabling more effective identification and investigation of suspicious claims.
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Prevention of unwarranted payments
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4x ROI in the first year
- Poised to enhance this further by exploring additional optimization opportunities
AI-powered detection, built for results
Shift Claims Fraud and Shift Underwriting Risk work to stop fraud before it impacts the bottom line. With AI-powered accuracy, they uncover hidden risks, reduce false positives, and surface fraud and misrepresentation in real-time, driving stronger ROI and greater confidence across claims and underwriting.
Contact us or schedule a demo to learn more.
