How Pointo Helps Combat Insurance Fraud

Insurance fraud is a common problem faced by insurance companies. Experts estimate that attempted fraud, both detected and undetected, accounts for 10% to as much as 20% of all claims. See how geolocation data, advanced analytics, and AI can help fight insurance fraud more effectively.

In 2022 alone, nearly 32,000 cases of insurance fraud were identified in Poland, preventing improper payouts totaling 409 million PLN, roughly 1% of all compensation paid that year. Considering the estimated volume of undetected fraud, insurers may be losing billions of zlotys annually to illegitimate claims, which are losses that ultimately affect both insurance companies and end customers, who face higher premiums as a result.

In this article, we analyse how insurers can overcome technological debt and use the latest technology to grow and reduce fraud.

The Most Common Types of Insurance Fraud

The most frequent — and most costly — form of property insurance fraud identified in Poland involves car insurance. Common schemes used by fraudsters in this area include intentionally causing collisions (especially with expensive vehicles), using damaged cars imported from abroad to file false claims, and exaggerating the extent of injuries reported after accidents. 

Beyond that, insurance companies also face fraud attempts related to homeowners and renters insurance, as well as general liability policies. The highest-value fraud cases typically involve property insurance against fire damage. Common tactics include inflating the value of insured items in home insurance claims, deliberately damaging expensive agricultural or construction machinery, and arson committed for the purpose of obtaining a payout

The most effective response to these schemes is modern technologies such as big data and big-data-powered process automation

How Pointo Supports Insurance Companies in Combating Insurance Fraud

A key factor in helping insurers work more efficiently and reduce the number of fraudulent claims is access to high-quality data, both geospatial and customer-related. Many insurance companies still rely on time-consuming, expensive, and often unreliable processes, such as in-person inspections by claims adjusters. 

The Pointo Platform aggregates data from over 230 sources, which are crucial for insurers in accurately assessing insurance risk, optimizing pricing, and verifying claims. The platform was designed to provide insurers with comprehensive, up-to-date, and high-quality spatial data integrated with various sources. Collecting all data, documents, and user behavior available to the insurer in one place allows for easier detection of inconsistencies that may result from an attempt to fraud insurance

The Pointo Platform can also support claims verification in other insurance domains, such as car insurance. Information about the exact location of the incident, local traffic conditions, and weather data — when processed through advanced AI analytics — can automatically flag inconsistencies and determine whether the reported event actually occurred. This significantly improves fraud detection rates.

Benefits of Implementing the Pointo Platform for Insurance Companies

Using data from Pointo.pl enables insurers to accurately assess risk across various areas, directly improving pricing quality. With access to detailed spatial data, insurers can better adapt their offers to reflect actual risk levels, leading to optimized premiums and reduced losses from inaccurate estimates. Examples include more precise car risk assessments and better-aligned property policies based on local conditions, which demonstrate the tangible financial value of Pointo.pl data.

Combining insurers’ internal data with Pointo’s insights and analyzing them effectively also increases the detection rate of fraudulent claims. This helps insurers reduce losses from improper payouts, enabling them to offer more competitive pricing and build greater trust with customers.

Want to learn more about how advanced technology can help fight insurance fraud?

Check out what Pointo has to offer and see how integrating geospatial data can help your company minimize losses from undetected fraud, enhance risk assessments and claims handling, and deliver more competitive offers to your clients.