The latest developments across the P&C insurance industry regarding fraud, risk and compliance.
17 November 2016

FRISS publishes findings Insurance Fraud & Digital Transformation Survey 2016

On November 17th FRISS published the report of its “Insurance Fraud & Digital Transformation Survey 2016”. The survey was conducted by FRISS to get direct input on trends, challenges and the current state of the insurance industry. Input was provided by 160+ insurance professionals from 25+ countries.

ebook-cover-insurance-fraud-digital-transformation-survey-2016-largeCurrent market state

The insurance industry is undergoing many positive developments within both fraud fighting and digital transformation. Most of the insurers questioned for this study are starting to undertake progressive measures, or have already set the first steps. However, in order to stay ahead in dynamic times and to sustain for the future, it is time for insurance companies to convert words into deeds.

Data is biggest fraud challenge

This study indicates that the biggest challenges in effectively responding to fraud are related to data. Protection and privacy (36%), quality of internal data (30%) and access to data sources (36%) require serious attention in the fight against fraud. Moreover, external data sources are perceived as an important aid. External data provides a more comprehensive and objective picture of, for example, an incoming claim or insurance application at underwriting.

Digital transformation: insurance is a follower

Online channels are booming. The majority of insurance companies (65%) offer insurances through an online sales channel. However, online is not about to emerge much further in the next 12 months. If you compare the online evolvement to several other industries, the insurance market is a ‘follower industry’.

Mobile apps mainly used for claims and customer service

The same goes for mobile apps, provided by 53% of the insurers, which are merely used for claims and customer service at this point. At most insurance companies, mobile app users cannot yet apply for a policy through the application (only at 34% of the insurers). Furthermore, 47% of the insurers use predictive analytics. Mainly for pricing and underwriting but it is also well applied to claims and fraud detection.

Telematics not widely implemented

Not yet widely embraced is the use of telematics (25%). This is remarkable, as the topic has a high attention and discussion rate. Insurers use telematics most often for risk-based pricing and to stimulate safe driving behavior. Gaining claim information is not a priority. Using data from telematics to better assess and verify claims is also not a common practice. Might this be a missed opportunity?

Fraud requires both priority and engagement

Insurance professionals value fraud priority with a 7 out of 10 on average. This leaves room for improvement. Claims and underwriting receive the highest fraud priority, but at the same time still lack engagement. Sales and digital departments lack both priority and engagement, which is an alarming signal given the rise of online sales channels. The go-to market strategy and approach of online differs from traditional channels. Online may attract a different kind of audience, accompanied by different types of risk. For those channels, fraud prevention is crucial.

Prevent rather than cure?

Most organizations actively work on fraud management within the portfolio. However, a significant share of the insurers rather prevent than cure as an additional fraud approach. The balance between portfolio quantity and quality is essential for a healthy situation. Unfortunately, covering risks in premiums is common practice for some insurance companies.

Fighting fraud is a manual operation within many organizations (44%). Thus, fighting fraud can be a time consuming and error prone process. Organizations with an automated solution (48%) are usually more effective at fraud investigation by directly recognizing claims that need further attention or require active follow-up. Chances of detecting fraud and limit false positives to a minimum could be higher when detection methods are automated.

It is important for insurance companies to become effective in fraud detection. An essential aid for an effective follow-up could also be the deployment of a Special Investigations Unit (SIU). 65% of the insurers already have such a unit in place. This does not automatically mean that 35% is not involved in active investigation. Insurers could also cover such tasks in current operations.

Fraud concerns the entire organization

Empowerment of the SIU and C-level commitment form the basis for improving fraud awareness and maturing the organization. In order to fight fraud effectively, it is vital to establish fraud awareness throughout the entire organization. Looking at the indicated levels of awareness and maturity at insurers, fraud trainings focus mainly on the claims department with underwriting as a runner-up. The findings show that the fraud awareness gap with other departments is significant (e.g. sales, product, digital, online).

Jeroen Morrenhof, FRISS CEO, states: “Given the amount and diversity of insurance professionals who responded to the survey, we feel that this report gives a realistic overview of the state of the market as it is today. We hope to raise the level of fraud awareness, as this is a key element in supporting an honest insurance industry.”

The full report is available for free. Download it here.

Contact us

Cookie and Privacy Policy

1. Introduction

When you use this website, FRISS may collect information about your use of the website and the content offered. We believe it is important to handle your (personal) data with due care and confidentiality. When processing your personal data, we comply with the General Data Protection Regulation (Algemene Verordening Gegevensbescherming) and Article 11.7a of the Telecommunications Act (Telecommunicatiewet).

1.1.  Controller

The controller of the processing of personal data is:

FRISS Fraudebestrijding B.V.
Orteliuslaan 15
3528 BA

This processing of personal data is registered with the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) in The Hague under reporting number m00004997.

1.2.  Purposes of data processing

There are several places on our website where you can fill in your (personal) data. We will explain the purposes of the various instances of data processing below.

Filling in the contact form or sending an e-mail

If you fill in the contact form on our website or send us an e-mail, we will only use the (personal) data you provide for the purpose or purposes for which you filled in the contact form or sent the e-mail.

Download form

If you download files on our website (such as e-books, whitepapers or reports), we will use the (personal) data you provide for one or more of the following purposes:

  • for the execution of an agreement, for example to send you the e-book, whitepaper or report you have chosen;
  • for the formation of an agreement, for example by contacting you by telephone or in writing.


If you fill in the application form for the newsletter on our website, your (personal) data will be used to send you the newsletter. Each newsletter contains a hyperlink at the bottom of the message that you can use to unsubscribe.

In addition to the personal data you provide to FRISS yourself, FRISS may collect, record and process additional (personal) data if you use the (web) services of FRISS. This concerns the following personal data:

  • data from the used equipment, such as a unique device ID, version of the operating system and settings of the device you use to access a service;
  • information about the use of a service, such as the time at which you use the service and the type of service that is used;
  • location details from your device or derived from your IP address that is provided to us when you use a particular service;
  • data available from external sources. We may receive information about you from public or commercially available sources.

1.3.  Provision of (personal) data to third parties

Your (personal) data will never be provided to third parties without your permission, unless we have an obligation to do so pursuant to legislation or regulations or you have given permission for this.

1.4.  Security of data

FRISS respects your privacy and ensures that personal data are handled confidentially and with the utmost care. All processed (personal) data is stored exclusively in secure databases. These databases are only accessible to employees of FRISS, to the extent that this access is required by virtue of their position. FRISS makes every effort to secure these systems against loss and/or any form of unlawful use or processing.

1.5.  Inspection, correction and deletion of data and the right to object

You can view your data that is processed by FRISS at any time and free of charge and, if you so wish, modify this data or have it deleted. You can also object to receiving information about products, services or content of FRISS. If you wish to make use of one of these options, you can send an e-mail to the Data Protection Officer of FRISS via privacy@friss.eu or write to the following address:

FRISS | fraud, risk & compliance
Attn. Data Protection Officer
Orteliuslaan 15
3528 BA Utrecht.

2. Cookies

When using this website, information about your use of these services and other websites may be collected by or on behalf of FRISS, for example by means of cookies.

A cookie is a small file that is sent along with pages of a website and stored by your browser on the hard disk of your computer. We use cookies to remember settings and preferences. You can disable these cookies via your browser.

2.1.  The purposes for which FRISS uses cookies

On our website we use cookies for the following purposes:

  • for statistical purposes, in order to analyse the use of FRISS websites. This allows us to keep track of the number of visitors and see which parts of our website are popular. We use Google Analytics in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by Google;
  • for what is known as ‘targeting’ purposes, if you have used the download form. By targeting we mean building a profile of you based on your surfing behaviour on our website, after which we may contact you by telephone or e-mail based on the interests you have shown in order to offer you FRISS services that you may be interested in. We use HubSpot in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by HubSpot;

3. Changes to this Cookie and Privacy Statement

FRISS may make changes to this Cookie and Privacy Statement. All modifications will be published on this page. We advise you to consult this Cookie and Privacy Statement regularly, so that you are always aware of the content of the current Cookie and Privacy Statement.