Insurance Fraud, Identification of Fraudulent Cases and Possibilities for Reducing This Phenomenon

Klaudia Lipi – Fan S. Noli University, Faculty of Economics, Bulevardi Rilindasit 11, 7001, Korçë, Albania

Abstract: Insurance fraud is when someone gives false, incomplete, or con­cealed information, to an insurance company with the intention of making a profit. This may include creating illegal insurance policies or making false claims against an existing policy.

The types, scale and consequences of fraudulent practices in the insurance in­dustry are the purposes why this phenomenon is chosen to be treated and an­alyzed in this paper. Trying to find and suggest ways to reduce it after studying fraudulent practices in specific insurance products. Different studies around the world show that more than half of insurers believe that fraud is the most important threat in the insurance industry. All insurance companies and all classes of business and customers are affected by fraud, in terms of costs in­curred. For the insurers, the fraud can damage also their image and reputa­tion. Consequently, the effort invested in countering this scourge has become essential for both insurers and customers.

The insurance companies are planning to use more resources to prevent and reduce insurance fraud, by designing and implementing insurance fraud re­duction policies. Nowadays, they use Strategies and Technologies such as Ar­tificial Intelligence and Machine Learning to detect and prevent fraud in the insurance industry.

8th International Scientific Conference – EMAN 2024 – Economics and Management: How to Cope With Disrupted Times, Rome, Italy, March 21, 2024, CONFERENCE PROCEEDINGS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-83-7, ISSN 2683-4510, DOI: https://doi.org/10.31410/EMAN.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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