Kathmandu. Insurance fraud cases are on the rise all over the world.
That’s according to Quinn’s ‘Insurance Fraud Statistics 2025: Exposing Huge Losses’. The report predicts that global insurance fraud losses will exceed $80 billion by 2025.
The report estimates that while insurance fraud rates in some regions approach 10 percent, industry-wide suspicious insurance payments are typically closer to 2 percent to 10 percent, depending on the business and jurisdiction. In the Asia Pacific region, fraud claims increased by 22 percent year-on-year in 2024. Which is increasing due to fake accidents and increased claims.
Globally, auto insurance fraud increased by 19 percent last year. This highlights the sector’s risk for organized networks that fake payments to make.
Life insurance is one of the most affected segments. The loss of which is close to $ 75 billion annually worldwide.
Property and damage fraud accounts for about 10 percent of the industry’s total losses. That’s about $122 billion a year.
Collectively, the loss of life and property worldwide is more than $300 billion. It is growing at a rate of more than 10 percent every year.
Technology is playing a central role in fighting these risks. Predictive modeling, AI and automated red flag systems are now widely used. The global fraud detection insurance market is expected to grow from $7.5 billion last year to $9.05 billion in 2025 and $22.9 billion by 2029.
Insurance companies that use AI tools see a 20 percent to 40 percent reduction in fraud, depending on the type of lawsuit. Emerging threats such as deepfake impersonation, synthetic identity fraud and voice-based scams are increasing the risk in many markets.
Insurance companies have also reported an increase in fake property damage claims. Last year, drones helped detect nearly $1 billion worth of fraudulent activity.
While progress has been made in detecting insurance fraud, fraud continues to drive up costs and slow claims processing globally.
