Shelter Insurance Adopts AI-Powered Fraud Detection from Shift Technology

Shelter Insurance, a mutual insurer committed to delivering quality policyholder experiences, has implemented Shift Technology's AI-powered claims fraud detection solution, Shift Claims Fraud. This move aims to reduce exposure to fraudulent auto and property insurance claims, which significantly impact insurer profitability and customer premiums. Shelter Insurance's approach leverages artificial intelligence to identify suspicious claims with greater accuracy, enabling efficient and fair investigations.

Shift Claims Fraud detection technology helps insurers by minimizing false positives and detecting both individual and complex network fraud schemes. The AI solution provides contextual insights and documentation to support investigative decisions, improving operational efficiency in claims fraud management. This is crucial as property and casualty claims fraud costs the U.S. insurance industry approximately $90 billion annually.

Shelter Insurance's adoption of AI-based fraud detection aligns with industry trends toward leveraging advanced technology to tackle increasingly sophisticated fraud schemes. The company's membership in the Insurance Data Network (IDN) further facilitates data-driven insights and collaboration in fraud mitigation efforts.

Shift Technology emphasizes the importance of adopting innovative fraud detection tools to maintain competitive advantages over fraudulent actors. Shelter Insurance's proactive steps illustrate how insurers are integrating AI to enhance risk management, protect policyholders, and optimize combined ratios.

This development reflects broader shifts within the U.S. P&C insurance sector toward digital transformation and AI integration, driven by rising fraud complexities and the need for improved investigative efficiency. The advancement serves as a strategic example for other insurers seeking to balance customer service excellence with effective fraud risk management.