The payment was sent by HSBC to Standard Chartered and recorded as a tokenized deposit obligation on HSBC’s Tokenised Deposit Service and Standard Chartered’s tokenized-deposit infrastructure. SWIFT’s blockchain platform acted as the orchestration and record-keeping layer for the transaction.

HSBC and Standard Chartered Complete Tokenized Deposit Transaction

Mark Willis, head of emerging payments, transactions services, and digital assets at Standard Chartered, said in a prepared statement: “As institutional demand grows for faster, more efficient ways to move liquidity, and optimize working capital increase, interoperable tokenized deposits will play an increasingly important role in helping corporate and institutional clients manage treasury, unlock operational efficiencies and support real time liquidity management across markets.”

Lewis Sun, head of digital currencies at HSBC, added: “It demonstrates how digital money issued by banks can be interoperable across institutions while maintaining the integrity and regulatory oversight of the existing financial ecosystem.”

The transaction came six weeks after SWIFT made its digital ledger platform available for initial use. SWIFT officials said the ledger will gain additional functionality after its initial go-live phase. Interoperability remains one of the main barriers to broader tokenized deposit adoption, and this cross-border settlement trial directly addresses that challenge.

SWIFT Ledger Supports Interbank Settlement

Tokenized Deposits differ from stablecoins in important ways. Private institutions issue stablecoins backed by an audited reserve of highly liquid financial instruments. Tokenized Deposits, by contrast, are digital representations of bank deposits issued by regulated financial institutions and act as direct claims on those institutions. Owners can convert tokenized deposits back into fiat currency and restore account balances.

For corporate treasuries, tokenized deposits offer the benefits of digital money, faster settlement, programmable money, digital asset integration, and immutable transactions while maintaining existing banking relationships and aligning with current banking regulations. This makes them relevant for treasury management and real-time liquidity operations.

Tokenized Deposits Target Treasury and Liquidity Needs

The HSBC and Standard Chartered transaction via the SWIFT digital ledger is only the latest in a series of recent announcements. A day earlier, the Canton Network said that tokenized deposits are live on its network, with HSBC, Lloyds Bank, and JPMorgan Chase in various stages of testing. In early June, The Clearing House released plans to launch on-chain clearing and cross-border settlement of tokenized deposits within the established banking framework. A month later, the Cari Network announced a soon-to-launch pilot to support real-time settlement, liquidity management, and digital money movement, designed by a group of US regional institutions.

The significance of these projects lies less in how they achieve results and more in whether they can deliver faster settlement, lower reconciliation costs, and real-time cash management. The next step will be whether these pilots develop into production-quality systems capable of providing interoperability and meeting regulatory obligations across jurisdictions.

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The partnership places AI banking automation at the centre of efforts to modernise how banks and financial institutions manage customer-facing processes, from sales and service through to lending and onboarding.

AI Banking Automation Expands Across MENA

Through the partnership, Bayanat will use Creatio’s platform to support financial institutions looking to replace fragmented legacy systems with unified, AI-native customer operations. The goal is to improve operational efficiency, strengthen regulatory compliance and increase organisational agility.

Bayanat brings specialist knowledge of banking business architecture and the regulatory landscape across the region. This expertise positions the company to help financial institutions adopt AI banking automation while meeting the specific operational and compliance requirements that govern the sector.

Mohammad Tahboub, Bayanat’s President, said: “This partnership significantly enriches Bayanat’s enterprise portfolio, bringing a world-class solution to regional banks striving to make the leap to the next generation and meet aggressive digital transformation mandates like the Saudi Vision 2030.”

Financial Institutions Target Workflow Efficiency

Creatio’s platform is built to allow financial institutions to orchestrate customer journeys, automate banking operations and support employees with AI tools designed to improve how work gets done. Through its Unlimited Enterprise operating model, organisations can scale execution across teams, AI agents and operations without the licensing constraints typical of traditional enterprise software.

The platform combines CRM capabilities, industry-specific workflows, AI-native features and no-code tools on a single unified system. No-code technology plays a key role in enabling financial institutions to adapt processes quickly and scale banking workflow automation without heavy reliance on developer resources.

Alex Donchuk, Senior Vice President of Global Channels at Creatio, said: “Financial institutions across MENA are investing heavily in AI, but lasting transformation requires more than new technology. It requires deep industry expertise and the ability to modernize customer operations at scale. Bayanat’s experience in banking transformation and strong understanding of regional market requirements make them an ideal partner to help organizations adopt AI faster, automate customer workflows, and deliver better experiences across every stage of the customer journey.”

AI Adoption Covers Lending and Onboarding

The partnership specifically targets AI banking automation across several core banking functions, including sales, service, lending and onboarding. These are areas where financial institutions in the MENA region are increasingly seeking to streamline processes and reduce manual intervention.

By combining Bayanat’s understanding of regional banking requirements with Creatio’s AI-native platform, the partnership aims to support financial institutions that are pursuing broader digital transformation strategies. The focus remains on helping organisations modernise customer operations at scale while maintaining full regulatory compliance.

Creatio is recognised as a Leader and Strong Performer in multiple Gartner and Forrester reports, and its products receive strong end-user reviews on peer-to-peer platforms.x`

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FinCEN BOI Reporting Rules Change for US Companies

Domestic Entities Exempt, Foreign Obligations Remain

Under a final rule issued by FinCEN using its authority under the Corporate Transparency Act, all domestic reporting companies are now exempt from BOI reporting. The rule effectively removes these entities from the definition of “reporting company” in the relevant federal regulations. U.S. persons are also exempt from providing beneficial ownership information under the revised framework.

Foreign reporting companies, however, continue to have BOI reporting obligations for non-U.S.-person beneficial owners. This means the FinCEN BOI Reporting system has not ended entirely. The change is targeted: domestic entities no longer file, but the framework still applies to certain foreign entities registered to do business in the United States. Financial institutions must keep this distinction front of mind when onboarding legal-entity customers.

Banks Retain Beneficial Ownership Verification Duties

CDD Obligations Unchanged for Covered Institutions

The rollback of FinCEN BOI Reporting for domestic companies did not repeal or modify the 2016 customer due diligence rule. The Corporate Transparency Act itself makes this explicit, stating that nothing in the legislation authorises the repeal of the requirement that financial institutions identify and verify beneficial owners of legal-entity customers.

This means banks and other covered financial institutions must continue collecting and verifying beneficial ownership information directly from their legal-entity customers at account opening. Customer due diligence obligations remain fully in effect regardless of whether a company has filed with FinCEN. Institutions should not interpret the domestic exemption as permission to reduce their own AML compliance efforts around beneficial ownership verification.

FinCEN has noted in its rulemaking record that eliminating domestic BOI reporting could result in illicit finance risks, and that illicit actors frequently use shell and front companies to obscure their identities within the U.S. financial system. Financial institutions should therefore reassess the risk posed by domestic privately held legal-entity customers, particularly those exhibiting shell-company or front-company indicators.

BOI Database Changes Affect AML Workflows

Less Coverage Requires Alternative Verification Sources

Congress originally envisaged that financial institutions could access the FinCEN BOI database to corroborate ownership information obtained directly from customers — not to replace their own customer due diligence processes. With domestic companies now exempt from filing, the database will not contain records for most U.S. entities. Additionally, the foreign reporting company records will exclude U.S.-person beneficial owners.

Financial institutions that built onboarding, periodic review, or enhanced due diligence workflows around the FinCEN BOI Reporting database should now identify every dependency on that data source. Reliable alternatives include reviewing organisational documents such as articles of incorporation and operating agreements, requesting ownership attestations directly from customers, checking public records, and conducting adverse-media screening.

Compliance teams should update internal policies and procedures to reflect reduced ownership transparency, revise risk-assessment frameworks with defined escalation triggers, refresh training materials, and establish clear processes for resolving incomplete or inconsistent ownership information. Institutions should not wait for further guidance before addressing known workflow gaps. Monitoring FinCEN’s updated FAQs and related AML rulemaking remains essential for translating regulatory developments into practical control updates.

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The third five-year plan for economic and social development, published on 18th August 2026, sets a target of raising the added value of non-gaming industries to about 60 per cent of gross domestic product by 2030, compared with 56.7 per cent in 2024.

Gaming continues to underpin the local economy. In the first seven months of the year, it generated MOP$67.9 billion (US$8.4 billion), accounting for more than 80 per cent of Macau’s total public revenue. However, the government is now working to build stronger foundations for growth beyond the casino floor.

The policy document identified four flagship infrastructure projects and a new government-backed fund to speed up development across priority non-casino sectors. These include modern financial services, healthcare, advanced technology and the convention industry. Macau Financial Services feature prominently among the sectors earmarked for expansion under this road map.

Macau Financial Services Move Into Five-Year Plan

The plan makes clear that financial services in Macau are a strategic priority for the territory’s economic future. By channelling resources into modern finance and fintech, the government intends to build a broader economic base that is less exposed to swings in gaming revenue. Support for local SMEs to upgrade their digital and technological capabilities also forms part of the wider effort, alongside the development of the Guangdong-Macau In-Depth Cooperation Zone in Hengqin as a complementary growth platform.

The emphasis on Macau Financial Services within the plan reflects the government’s recognition that a credible financial sector is essential for long-term diversification. Macau fintech development and financial infrastructure upgrades sit alongside healthcare and high-technology as the pillars of this strategy.

Digital Currency and Payments Take Priority

A significant portion of the road map focuses on digital currency Macau plans and cross-border payments. The government intends to press ahead with legislation and controlled trials for its official digital currency, the e-MOP, while also working to establish a unified settlement system.

Macau also plans to draw on its participation in Project mBridge, a multi-central bank digital currency platform developed with international monetary authorities, to help build a next-generation real-time payment platform. Additionally, the government will explore potential links between the digital yuan and the e-MOP, a step that could facilitate cross-border payments between Macau and the mainland.

Bond Markets Gain Support Under New Road Map

The five-year plan also addresses Macau’s capital markets ambitions. The government has outlined bond issuance subsidies to encourage activity, alongside planned upgrades to the Macau Central Securities Depository System. Expanded clearing links with both mainland and international capital markets are also on the agenda, as part of broader efforts to attract global issuers and institutional investors to the territory.

These measures, taken together, signal a concerted push to develop Macau Financial Services into a meaningful contributor to GDP. Whether the territory can deliver on these plans by 2030 will depend on the pace of legislative progress, the success of e-MOP trials and the ability to draw international market participants into what remains a relatively small financial centre.

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The framework draws on the African Development Bank Group’s project platforms, which handle origination, preparation and financing. By aligning Canadian public and commercial finance instruments with these platforms, both parties intend to improve how capital flows into bankable projects on the continent.

Canada and AfDB Align Development Finance

The partnership builds on a long-standing financial relationship between Canada and the African Development Bank Group. Canada has been a consistent contributor to the bank’s concessional and equity vehicles. Its CAD 250.3 million contribution to the African Development Fund’s seventeenth replenishment remains a core element of that relationship. Canada also made a CAD 100 million contribution to the Agri-SME Catalytic Financing Mechanism and a CAD 10 million equity investment in the African Guarantee Fund.

These commitments reflect a broader strategy of using development finance to support sectors such as agribusiness and local enterprise while also strengthening guarantee instruments that attract additional private capital.

Funding Commitments Support Capital Mobilisation

Climate finance is a central pillar of the framework. Canada is providing an additional CAD 140 million to support the second phase of the Canada and African Development Bank Climate Fund, known as CACF 2.0. This channel directs capital toward clean energy and resilient infrastructure projects, reinforcing the climate finance dimension of the broader development finance relationship.

Between 2021 and 2025, Canadian firms secured USD 44.25 million in bank-funded contracts, reflecting commercial engagement alongside the public finance commitments. The framework also identifies potential cooperation through FinDev Canada and Export Development Canada, which could contribute through parallel and syndicated financing, co-financing for regional infrastructure and collaboration with guarantee instruments.

Framework Targets Private and Infrastructure Investment

The integrated approach is designed to connect public finance, private capital, technical expertise and shared priorities. Development finance from Canada and the African Development Bank Group is intended to serve as a foundation for attracting broader private-sector participation in sectors including resilient infrastructure, clean energy, agribusiness and local enterprise development.

Capital mobilisation sits at the heart of the framework. By combining concessional funding, blended finance tools, export credit facilities and equity investments, the structure aims to reduce risk for private investors and improve the pipeline of prepared, financeable projects across the continent.

The framework does not represent a single new transaction. Rather, it consolidates existing and planned financial commitments into a coherent investment approach. Canada’s Africa Strategy provides supporting context for the partnership, but the framework itself is primarily a development finance and capital mobilisation initiative built around the African Development Bank Group’s institutional platforms and project infrastructure.

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Major Banks Adopt Ant International Forex AI Tool

Ant International, the global financial technology arm of Alibaba-affiliated Ant Group, has developed an AI-based foreign exchange solution that the three banks are now using. The forex AI tool is designed to assist financial institutions in offering improved FX services to corporate and business clients operating across multiple currencies and markets.

Citi, HSBC and Standard Chartered each bring a substantial global footprint to cross-border banking. By adopting this forex AI tool, the banks aim to enhance the way businesses access FX forecasting and manage exposure to currency fluctuations. The tool is intended to complement existing treasury management workflows rather than replace them, providing an additional layer of intelligence to support decision-making in volatile foreign exchange markets.

Ant International has been expanding its partnerships with global banks in recent years, and the adoption of this tool by three major institutions signals confidence in the technology’s practical value within day-to-day banking technology operations.

AI Supports Foreign Exchange Risk Management

FX risk management remains one of the most complex areas of corporate finance, particularly for companies with operations spanning multiple jurisdictions. Currency movements can significantly affect profit margins, and businesses have traditionally relied on manual processes and basic hedging instruments to manage this exposure.

The forex AI tool developed by Ant International uses artificial intelligence to support more informed FX risk management. It is designed to process large volumes of market data and help identify patterns that may be useful for treasury teams assessing currency exposure. For financial institutions such as Citi, HSBC and Standard Chartered, integrating this kind of technology into their service offering allows them to better serve clients navigating complex cross-border payment and treasury management needs.

The adoption also reflects a broader shift within banking technology, where institutions are increasingly looking at AI-driven solutions to improve operational efficiency and client outcomes in areas such as foreign exchange, compliance and payments.

Banking Operations Move Toward AI-Based FX Tools

The decision by Citi, HSBC and Standard Chartered to adopt Ant International’s forex AI tool sits within a wider industry trend. Banks worldwide are investing in financial technology that can automate and improve processes across their operations. Foreign exchange, given its scale and the speed at which markets move, is a natural fit for AI-based tools.

For Ant International, having three globally significant banks adopt its FX technology strengthens its position as a provider of AI solutions in the financial services space. The company continues to build out its offering for institutional clients, with FX risk management and treasury management among its core focus areas.

As more banks explore the use of AI in their foreign exchange operations, the adoption of tools like Ant International’s forex AI tool is expected to become increasingly common across the sector.

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The definitive agreement has been concluded, though closing remains subject to customary conditions, including required regulatory approvals. Completion is expected in the first quarter of 2027.

Munich Re Agrees $575 Million At-Bay Deal

This cyber insurance acquisition brings together Munich Re’s global reinsurance strength and At-Bay’s technology-driven approach to cyber risk management. At-Bay primarily serves the SME market in the United States, focusing on organisations that face increasing cyber threats but often lack the resources to manage cybersecurity effectively.

At-Bay has grown into a top-10 US cyber insurer with gross written premiums totalling $278 million as at 31 December 2025, plus cyber fee service revenues of $23 million. The company currently employs approximately 280 people in the US and Israel.

Mike Kerner, Member of the Board of Management at Munich Re, said: “At-Bay’s market position and unique capabilities make it a perfect addition to our specialty insurance portfolio and an essential component of our future cyber offering. We expect the business to evolve into a strong earnings growth driver over time.”

At-Bay Adds Cyber Insurance Technology

Founded in 2017, At-Bay combines cyber insurance and cybersecurity into an integrated risk solution. Through its unified security platform, At-Bay continuously identifies, monitors and reduces insured cyber risk across the full policy lifecycle while driving data insights to improve underwriting practices.

At-Bay provides insurance protection and security solutions to close to 40,000 businesses in the US, safeguarding up to $800 billion in collective business revenue. Coverage includes cyber, Technology Errors and Omissions, and Miscellaneous Professional Liability. At-Bay also offers proprietary security solutions including its Stance Managed Detection and Response service.

Rotem Iram, CEO and co-founder of At-Bay, said: “Joining Munich Re will accelerate At-Bay’s mission to close the cybersecurity protection gap for the 90% of businesses being left behind. With Munich Re, we gain the scale and reach to better address the evolving needs of every small business.”

Deal Expands Munich Re’s Cyber Risk Capabilities

Once the insurtech acquisition closes, the At-Bay business will be overseen by Hartford Steam Boiler, the technology-forward and cyber-focused arm of Munich Re’s Global Specialty Insurance business. HSB has been a main strategic partner since At-Bay’s founding.

Jeffrey O’Shaughnessy, president and chief executive officer of HSB Group, said: “The combination of At-Bay’s market-leading cyber capabilities and HSB’s intense cyber and underwriting expertise will significantly enhance our cyber offering and accelerate our speed to innovate in a market moving towards vertically integrated insurer-security platforms.”

This cyber insurance acquisition positions Munich Re for greater access to a cyber market evolving from standalone coverage towards integrated, continuously managed risk mitigation platforms. The deal highlights the growing role of technology-driven underwriting and proactive cyber risk management across the insurance industry.

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The Riyadh chapter is expected to welcome more than 200 senior decision-makers and 40 speakers, with participation from banks, financial institutions, fintech companies and technology providers.

This year’s programme is being developed around the theme “Vision 2030 & Fintech Innovation: Accelerating Saudi Arabia’s Digital Finance Ecosystem.”

The choice of InterContinental Riyadh also marks a closer association between FINNOVEX and the venue for this chapter. The property will host the main summit on 2 September, followed by executive workshops and roundtable discussions on 3 September.

Speaking about the association, Shabaz Ahmed , Show Director, FINNOVEX Global Series, said:

“Riyadh has become an important meeting point for financial services and technology, and we wanted a venue that matched the level of people we are bringing together.

For us, this was never only about booking a ballroom. We wanted the hotel to be part of the experience and part of the association. InterContinental Riyadh understood that approach, and I am pleased that we are working together for this chapter 38.

We have bankers, technology companies, regulators and senior executives coming into the same room. What matters now is making those two days useful for the people attending.”

The sponsor line-up for the Riyadh chapter currently includes OutSystems and Raqmiyath as Platinum Sponsors, Sardin as Gold Sponsor and Wultra as Bronze Sponsor.

The companies will participate alongside senior executives from the financial sector during the conference and networking programme.

FINNOVEX Saudi Arabia has been structured across two days.

2 September will host the main summit, including keynote sessions, panel discussions and executive networking.

3 September will move into a more focused format with workshops and roundtable discussions.

Topics across the programme will include the changing priorities of Saudi financial institutions, payments, technology, operational resilience, digital transformation and the role of fintech in the Kingdom’s financial sector.

Event Details

FINNOVEX Saudi Arabia 2026
2–3 September 2026
InterContinental Riyadh by IHG
Riyadh, Kingdom of Saudi Arabia

Theme: Vision 2030 & Fintech Innovation: Accelerating Saudi Arabia’s Digital Finance Ecosystem

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Recent industry analysis shows that paid losses, investigation expenses and settlement costs accounted for roughly 76% of US P&C premiums in 2022. That makes claims performance financially significant even before considering its effect on customer relationships and future business.

The commercial impact is becoming clearer as well. A 2026 survey covering more than 800 commercial claims experiences found that 78% of brokers said an unsatisfactory claims experience reduced their trust in an insurer, while 39% said they were unlikely to place business with that insurer after a poor experience. By comparison, 95% of brokers who reported a positive claims experience said they were likely to place business with the insurer again within the following year.

That puts claims service on both sides of the financial equation. Poor handling can increase rework, complaints and the risk of losing future business. Better handling can support stronger broker relationships, faster resolution and more efficient claims operations.

Claims Service is Becoming a Commercial Advantage

The financial value of claims service becomes particularly visible in commercial insurance, where brokers and businesses compare insurers not only on price and coverage, but also on what happens when a claim actually needs to be resolved.

A poor claims experience can weaken trust even when the underlying policy remains competitive. The commercial-lines research found that nearly four in five brokers who experienced an unsatisfactory claims outcome reported lower trust in the insurer. The fact that 39% would then be unlikely to place business with that insurer shows how a claims problem can extend beyond one loss and affect future premium opportunities.

The same pattern appears in retail insurance. Recent claims research found that 52% of customers who rated their digital claims experience as poor or only okay were at risk of attrition, compared with just 4% among customers who rated the experience excellent or perfect.

Claims experience is not the only factor behind retention. Price, coverage, competition and broader customer relationships still matter. But the difference in attrition risk shows that the claims journey can materially influence what happens after a customer has actually needed to use the policy.

For insurers, claims service is therefore moving beyond a customer-support function. It is becoming part of the commercial proposition, with potential consequences for retention, distribution relationships and long-term profitability.

Key takeaway: Claims service can influence broker trust and future business placement, making claims performance commercially important as well as operationally important.

Faster Claims Can Improve Both Experience and Efficiency

The value of claims service is not limited to whether a customer feels satisfied. How quickly and clearly a claim is handled can also influence operating efficiency, repair costs and the amount of work required before a case is finally closed.

Recent property-claims research shows how strongly speed can shape the customer experience. Average time from first notice of loss to final payment has risen to more than 44 days, while the average repair cycle is around 32.4 days. Claims completed within 10 days recorded an average satisfaction score of 762 out of 1,000, compared with 595 when repairs took more than 31 days.

The difference is not simply about making payments faster. Delays can create additional communication, repeat contacts, temporary accommodation costs, contractor coordination and other administrative work. When a claim remains open for longer, insurers may also need more staff time and resources to manage it.

Communication can make an equally important difference. In the same research, customers who found it very easy to communicate with their insurer recorded satisfaction of 777, compared with just 337 among those who found communication difficult. That suggests insurers can improve the claims experience not only by reducing the time needed to resolve a loss, but also by making the process easier to understand and follow.

For claims service, this creates a useful operational target: reduce avoidable friction without compromising the accuracy or quality of the decision.

The post Claims Service is Becoming a Bigger Driver of Insurance Profitability first appeared on World Finance Informs.

The financial incentive is substantial. Current industry estimates put the annual cost of insurance fraud to consumers and businesses at around US$308.6 billion across insurance lines. Property and casualty insurance represents a significant part of that burden, with recent industry analysis estimating that about 10% of P&C claims may be fraudulent, potentially representing around US$122 billion in annual losses. These figures are estimates rather than directly measured global losses, but they show the scale of the problem insurers are trying to address.

The challenge is that fraud is not always obvious. A deliberately staged accident may be easier to identify than a genuine claim where repair costs have been exaggerated or an injury has been overstated. Recent industry estimates suggest soft fraud accounts for about 60% of fraud incidents, while detection rates are estimated at only 20% to 40% for soft fraud, compared with around 40% to 80% for hard fraud.

That is where AI is becoming more relevant to insurance fraud. Instead of relying only on fixed rules, insurers can use machine learning and other AI techniques to examine patterns across claims and compare information from different sources.

AI is Expanding What Insurers Can See in a Claim

A modern insurance claim can contain much more than a written description of a loss. It can include photographs, videos, repair estimates, documents, audio, location information, telematics and other data. AI can analyse these different formats together, helping insurers identify inconsistencies or connections that may be difficult to spot through manual review alone.

This is particularly important for soft fraud, where the claim itself may be genuine but the value or circumstances have been exaggerated. Instead of asking only whether a claim meets a predefined fraud rule, AI can look for unusual combinations of information and direct investigators toward claims that deserve closer attention.

The technology is already gaining attention across the insurance industry. Recent research found that 35% of insurance executives identified fraud detection among their top five areas for developing or implementing generative AI applications. At the same time, the fraud-detection technology market is estimated to grow from US$4 billion in 2023 to US$32 billion by 2032.

Key takeaway: Insurance fraud remains a major financial cost, while lower detection rates for soft fraud create a clear opportunity for more advanced analytics.

The opportunity for insurers is therefore not simply to find more suspicious claims. It is to identify the right claims earlier, investigate them more efficiently and reduce losses without slowing down legitimate claims.

AI is Turning Fraud Detection into a Claims-Economics Problem

The financial case for insurance fraud detection is becoming harder to ignore, but finding more suspicious claims is only part of the equation. Insurers also need to consider the cost of investigating those claims, the time taken to settle legitimate losses and the additional customer and regulatory risks created by false positives.

Traditional fraud systems often rely on fixed rules and predefined triggers. These can still be useful, but they can struggle when fraud becomes more subtle or when the available evidence spans multiple formats. Current industry research estimates that soft fraud accounts for around 60% of fraud incidents, while detection rates remain substantially lower for soft fraud than for hard fraud.

AI can change that balance by examining claims across several sources at once. Instead of looking only at the information entered into a claims system, advanced models can combine text, images, audio, video, sensor information and other data to identify relationships or anomalies. This can help investigators focus their time on claims that warrant deeper review rather than manually examining every potentially suspicious case.

That distinction is important for insurance fraud because investigation itself has a cost. A model that flags thousands of questionable claims but sends too many legitimate customers into lengthy investigations may simply move the expense somewhere else in the claims process.

The more useful objective is therefore to improve the economics of detection by finding stronger signals earlier, reducing unnecessary investigations and preserving human expertise for complicated cases.

AI is Changing How Fraud Investigations are Prioritised

The biggest opportunity may come from changing how insurers allocate investigative resources.

Fraud teams have traditionally had to work through large volumes of claims and decide which cases deserve further investigation. AI can help score or prioritise those claims by looking for patterns that are difficult to identify manually, including unusual relationships between claimants, providers, repairers, previous claims and supporting evidence.

This is particularly useful in high-volume lines such as motor and property insurance, where even a small improvement in fraud detection can have a meaningful effect when applied across millions of claims.

The potential savings are significant. Industry analysis estimates that AI-driven technologies applied across the property and casualty claims lifecycle could potentially generate US$80 billion to US$160 billion in savings by 2032, depending on implementation and the sophistication of the systems involved. This is a forecast of potential savings, not money already captured by insurers.

At the same time, insurers are investing in the technology needed to pursue that opportunity. The fraud-detection technology market is estimated to grow from US$4 billion in 2023 to US$32 billion by 2032, reflecting growing demand for advanced analytics and automated detection.

Key takeaway: The growing cost of fraud and the potential savings from better detection are creating a financial case for insurers to invest in AI, but the value depends on how effectively those systems improve the entire investigation process.

The next challenge is making sure that investment produces better detection without creating more claims friction, because the economics of fraud detection ultimately depend on what happens to both fraudulent and legitimate claims.

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