One-Third of Consumers Would Alter Insurance Claims With AI Tools, Verisk Study Finds
Thirty-six percent of consumers say they would consider digitally altering an insurance claim image or document, even if it violates insurer rules, according to a new Verisk study. The figure jumps to 55 percent among Generation Z respondents.
The finding reflects how AI editing tools have moved from niche software to everyday applications. Nearly half of consumers who have used these tools describe the results as "very realistic," making manipulated content difficult to distinguish from authentic material.
Insurers are encountering this problem at scale. Ninety-eight percent of carriers say AI-powered editing tools are driving increased digital fraud, and 99 percent report encountering manipulated or AI-altered documentation. Three-quarters of insurers say such submissions have grown more sophisticated over the past year.
The Detection Challenge
Insurers are investing heavily in defenses. Sixty-five percent use third-party AI detection tools, and half deploy internally developed systems. Yet confidence hasn't kept pace with the threat.
While 58 percent of insurers feel confident detecting edits to real photos or videos, only 43 percent feel confident assessing digital media authenticity at scale. Just 32 percent say they could reliably identify a deepfake.
Two-thirds of insurers believe digital media fraud goes undetected often or very often across the industry.
A Generational Ethics Gap
Younger consumers show more comfort with digital alterations. Half of Generation Z and millennials would consider editing claims to strengthen their case, compared with 28 percent of Generation X and 12 percent of Baby Boomers.
The distinction between acceptable and fraudulent edits remains blurry. Fifty-two percent of consumers say adjusting brightness or contrast is acceptable, and 49 percent approve of cropping unrelated background elements. But 15 percent say exaggerating damage is acceptable, and 13 percent believe fabricating damage images is justified.
Broader Economic Consequences
Digital fraud threatens the insurance system's economics. Sixty-nine percent of consumers believe fraudulent claims will raise premiums for all policyholders, not just those submitting false claims.
Looking ahead, nearly half of insurers expect increased technology spending to combat fraud within three to five years. Many also anticipate tighter documentation requirements, longer claim cycles, operational strain on claims teams, and higher premiums for consumers.
Verisk's Shane Riedman, president of Anti-Fraud Analytics, said the problem requires industry-wide solutions. "This isn't a problem any one insurer can solve in isolation," he said. "As digital manipulation techniques evolve and deepfakes become more prevalent, many insurers are under pressure to close structural and operational gaps and move toward more connected systems."
The study surveyed 1,000 U.S. consumers and 300 insurance claims professionals. Learn more about AI for Insurance and its applications across the industry.
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