Strategic Partnerships and New Product Launches to Promote Insurance Fraud Detection Business

Inception of new technologies such as artificial intelligence and machine learning along with their use in real-time detection of various frauds have boosted demand for insurance fraud detection tools. Furthermore, applications of data analytics have facilitated quick and effective identification of fraudulent claims such as false medical records and fraudulent claim settlement activities in the insurance sector. Availability of robust cyber security infrastructure for effective detection of fraud cases in insurance activities has prompted the growth of the insurance fraud detection industry across the globe.  According to the report of Allied Market Research, the global insurance fraud detection market is projected to garner $28.1 billion by 2031. Following are some of the trends that are witnessed across the global insurance fraud detection market.

New product and technology launches have strongly influenced the growth of banking, financial services, and insurance (BFSI) sector. Such launches will also have a huge impact on the growth of the global insurance fraud detection market. Curacel, a firm developing insurance infrastructure for emerging markets, launched a new application programming interface-based interface tool that enables online businesses such as e-commerce, retail, logistics, and fintech for adding insurance to their key products. Reportedly, the firm is backed by Y Combiator (YC), a U.S.-based technology firm that develops insurance infrastructure for the African market.  Moreover, Curacel’s API-based interface tool- Grow has been integrated with 22 tech firms in Africa. Furthermore, the tool is likely to help these firms in either bundling their core products with insurance packages or providing insurance as a standalone solution to customers. Moreover, the new tool is anticipated to offer new business growth opportunities for insurance service providers in the health, automotive, and travel sectors. The strategic move of the firm is aimed at expanding its insurance business in Africa.

Strategic partnerships play a key role in leveraging the growth of any industry and the global insurance fraud detection industry is one among them. Kotak General Insurance declared its partnership with Inspektlabs, a computer vision technology startup firm. The partnership is aimed at utilizing the artificial intelligence-based technology of Inspektlabs for automating the vehicle inspection process aimed at speeding vehicle insurance renewals. Reportedly, the new artificial intelligence (AI) technology will not only accelerate the vehicle insurance renewal process but also help in detecting motor insurance fraud. The strategic move will help Kotak General Insurance in supporting its insurance underwriting processing activities. The initiative will also promote the use of AI in insurance fraud detection activities in the insurance sector.

Continuing with the trend of strategic partnerships, Verisk Analytics, Inc., a U.S.-based data analytics and risk assessment firm, and Pacific Life Insurance Company, a U.S. insurance firm, have joined hands. The strategic move is aimed at digitization of Pacific Life’s life insurance products with help of Verisk’s FAST tool for improving customer experiences through the offering of seamless life insurance services. The initiative will also help Pacific Life in enhancing the efficiency of its operations and improve its decision-making process. The key market players are executing the key business strategies such as partnership formation and new product and technology launches for increasing their customer base and increasing their revenues. In addition to this, implementation of these key business strategies are aimed at finding effective solutions for insurance fraud detection.

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