Fraud Detection in Insurance Claim System: A Review
Sandip Vyas, Shilpa Serasiya
Abstract
Insurance fraud has existed since the inception of insurance companies. These are a wide range of crimes that go undiscovered and cost the insurance business billions of dollars each year. Due to economic growth, increased awareness, and stronger distribution channels, the Indian insurance business is predicted to reach US${\$}$280 billion by 2020. India is ranked 10th in terms of gross premiums earned for life insurance and 15th for non-life insurance products. For that reason, wen’re introducing a blockchain-based framework for enabling secure transactions and data exchange among various interacting agents in the insurance network. Blockchain is a distributed peer-to-peer technology that allows for the safe, immutable, and transparent validation of healthcare claims. Also, discuss how blockchain and smart contracts can be used together to improve organizational operations. More particularly, it will show how these technologies can be utilized to create a system that prevents certain types of fraud in the areas of vehicle, health-care, and life insurance claims, among others. In this review will discuss about types of Fraud Detection in Insurance Claim System and its classification based on different machine learning methods. Also gives the future direction for Fraud Detection in Insurance Claim System.