Artificial intelligence-powered editing tools are becoming an everyday part of digital life, and data analytics and technology provider Verisk reports that their increased use is influencing behavior when filing insurance claims.
In the latest Verisk State of Insurance Fraud survey, 36% of consumers say they would consider changing insurance claim images or documentation, even if it violates the insurance company’s rules.
Verisk added that insurers have simultaneously recorded a surge in manipulated media, with 98% agreeing that AI-driven editorial tools are contributing to the rise in digital insurance fraud.
Verisk says it commissioned the study to assess how artificial intelligence is reshaping risk, decision-making and outcomes across the insurance industry. The company presents its findings as evidence that technology’s capabilities are changing not only how insurance claims are processed, but also how consumers perceive acceptable behavior.
“AI editing tools are changing the way people interact with digital content, and the insurance industry is feeling the changes in real time,” commented Shane Readman, President of Anti-Fraud Analytics at Verisk.
“Our concern is that many consumers do not believe that small edits cross the line, but when these changes are reflected in claims, they can have a significant impact on outcomes. As manipulated media becomes more common, many insurers face increasing pressure to establish clearer boundaries, increase visibility, and prevent fraud while maintaining a fair and efficient claims experience for policyholders.”
Verisk reports that AI editing tools are now widely accessible, easy to use, and capable of producing highly convincing results. According to the company, 44% of consumers who have used such tools describe the output as “very realistic,” confirming how difficult it is to distinguish between altered and authentic content.
Verisk further notes that exposure to AI-powered manipulation is increasing, with 41% of consumers saying they know someone who has used these tools for financial gain, including in insurance-related scenarios. The company highlights that this rises to 64% for Gen Z and 54% for Millennials.
Verisk says 62% of consumers believe that AI tools are often or very often used to manipulate insurance claim documents. From an insurer’s perspective, Verisk reports near-universal exposure, with 99% encountering tampered or AI-generated material, and 76% saying such submissions have become more sophisticated over the past year. The company characterizes this as a growing operational challenge that makes it difficult to distinguish between routine digital edits and intentional fraud.
Verisk’s findings also point to what the company calls a widening ethical gap. Although many consumers have clear boundaries in principle, 36% say they would consider editing their claims to increase their chances of success, despite rules prohibiting such behavior.
The company highlights generational differences, reporting that 55% of Gen Z and 49% of Millennials would consider editing their content, compared to 28% of Gen X and 12% of Baby Boomers.
Verisk further points out that attitudes differ depending on the type of editing. The company reports that 52% of consumers think adjusting brightness or contrast is acceptable, and 49% don’t feel comfortable removing background elements.
However, Verisk draws attention to more serious practices, stating that 15% think it is acceptable to exaggerate harm and 13% think it is acceptable to create a completely false image of harm. The company presents these findings as evidence that increasingly sophisticated tools may be normalizing behaviors that directly impact claims outcomes.
From an industry perspective, Verisk reports that insurers are investing in detection capabilities as digital fraud becomes more sophisticated. According to the company, 66% of insurers believe that manipulated media fraud often goes undetected and the use of both third-party and in-house AI solutions is increasing. Verisk notes that 65% of insurers use externally provided AI detection tools and 50% develop internal systems.
Despite these efforts, Verisk has shown that reliability remains limited when dealing with more advanced operational techniques. The company reports that 58% of insurers are very confident in detecting edits to real images and videos, but this drops to 43% when assessing authenticity at scale and only 32% when identifying deepfakes.
“Insurance companies are not standing still, but threats are evolving faster than many systems are built to handle,” Reidman said. “Detection tools that are not fully integrated into billing workflows can create blind spots. As deepfakes and other AI-driven operations become more common, carriers will need more connected systems and shared intelligence to respond.”
Verisk highlights that the impact of AI-powered fraud is expected to extend beyond individual claims. The company reports that 69% of consumers believe that fraud will increase premiums for all policyholders in the long run. Verisk added that 42% cited rising insurance premiums as their main concern, while 36% cited the risk of legitimate claims being delayed or denied if document falsification is incorrectly reported.
Looking ahead, Verisk says insurers can expect continued changes over the next three to five years, including increased adoption of anti-fraud technology, greater regulatory consistency, and stricter documentation requirements. The company also reported that it expects increased operational pressures, longer claims processing times and higher premiums.
“This is not a problem that any insurer can solve on its own,” Verisk’s Reidman added. “As digital manipulation technologies evolve and deepfakes become more prevalent, many insurance companies are under pressure to close structural and operational gaps and move to more connected systems. Doing so effectively requires shared intelligence and better integration to not only address increasingly sophisticated fraud, but also to ensure legitimate claims continue to be paid quickly and fairly and trust in the claims process is maintained.”
Verisk says the study is based on two national surveys involving 1,000 U.S. consumers and 300 claims professionals that aimed to assess how AI editing tools are impacting consumer behavior, fraud risk, and insurer preparedness.
