#United States #Boston #Shelter Insurance #Shift Technology #Claims Fraud

Shelter Insurance Partners with Shift Technology to Combat Claims Fraud

In a significant move to tackle the growing issue of claims fraud in the insurance sector, Shelter Insurance has announced its partnership with Shift Technology. This innovative company specializes in artificial intelligence (AI) solutions designed for the global insurance industry. The collaboration aims to enhance the detection and investigation of claims fraud, particularly in auto property insurance.

The Growing Concern of Claims Fraud

Claims fraud is a pervasive issue that incurs substantial losses for insurance companies. Recent estimates indicate that property and casualty claims fraud costs U.S. insurers nearly $90 billion each year, highlighting the need for effective detection mechanisms. Shelter Insurance, known for its commitment to exemplary service and innovative solutions, recognized that such fraudulent activities can undermine both customer experience and the overall health of the insurance system.

To counteract this, Shelter has leveraged Shift Technology's AI-driven solutions, specifically the Shift Claims Fraud Detection system. This advanced tool harnesses machine learning algorithms to sift through claims data, enabling insurers to identify suspicious patterns and potential fraud cases more effectively than traditional methods allow.

How Shift's AI Technology Works

One of the key advantages of Shift’s AI technology is its ability to reduce false positives. By distinguishing between legitimate claims and those that warrant further investigation, the system not only streamlines the claims process but also enhances operational efficiency. With the ability to identify both individual fraud cases and more complex organized fraud schemes, Shift’s approach represents a significant advancement in the fight against insurance fraud.

Mark Jones, Director of Litigation and Special Investigations Unit at Shelter Insurance, emphasized the harmful impact of fraud on the entire insurance ecosystem, stating, "What is insidious about insurance fraud is that it impacts nearly every aspect of the insurance business, from the policyholder experience to profitability to the premiums our insureds pay." Through this collaboration, Shelter aims to bolster its defenses against fraud and ensure that claims are investigated thoroughly and fairly, ultimately leading to quicker resolution times for customers.

Benefits to Policyholders and Insurers

The partnership not only benefits Shelter Insurance by improving its operational efficiency and reducing losses from fraud, but it also enhances the experience for its policyholders. By ensuring that claims are handled quickly and accurately, Shelter can maintain its high levels of customer satisfaction. In fact, the company has been recognized for its exceptional customer service, having ranked #1 in Customer Satisfaction in the Central Region by J.D. Power for six out of the last seven years. Additionally, Forbes recently named Shelter the World’s Best Auto Insurance Company for 2024.

As fraud detection becomes increasingly sophisticated, insurers like Shelter recognize the importance of implementing cutting-edge technologies. Barrett Callaghan, Head of Global Markets and Customer Success at Shift Technology, stated, "As auto insurance fraud becomes more sophisticated, insurers must look for solutions that give them advantages over bad actors. Shelter truly understands the value technology can bring to their fraud fighting initiatives, and we are proud to be supporting their efforts."

Conclusion

Shelter Insurance's collaboration with Shift Technology marks a pivotal step in the ongoing battle against insurance fraud. This partnership not only positions Shelter as a leader in innovative insurance practices but also reinforces its commitment to protecting its policyholders from fraudulent activities. With advanced AI tools at its disposal, Shelter is better equipped to ensure the integrity of its claims process while delivering exceptional service to its customers.