Some drivers may be using AI-generated images to present exaggerated vehicle damage in motor insurance claims, according to industry sources. Image-generation tools are now able to produce realistic visuals quickly, raising questions about their impact on insurance processes, the Express reported.
Recent developments in Generative Adversarial Networks (GAN), now integrated into commonly available image tools, are contributing to the issue. Some commentators suggest the technology is advancing to a stage where it is increasingly difficult to distinguish between genuine and altered images.
Neil Avent, chief technical officer at FleetCheck, said companies could face challenges in identifying digitally modified images as these tools improve. He said that if a person submitted a photograph of a damaged vehicle and used AI to apply additional marks such as scratches or dents, the results would appear more realistic than was possible in previous years. He also noted that in an incident involving a work vehicle, another party might take photos of the damage and use AI to increase its apparent extent in order to support a larger insurance claim.
In 2023, Zurich reported a rise in the use of digital technology in claims found to be false or misleading. The insurer cited examples including non-genuine repair invoices, fabricated engineer assessments, and altered repair estimates. There were also reports of images being digitally modified to include registration numbers on vehicles no longer in use.
The company stated that the use of such tools means individuals may now be able to submit inaccurate claims without being physically present at a repair site or vehicle location.
Scott Clayton, head of fraud at Zurich, said the company uses standard validation procedures to support claims assessment. He added that the wider sector may need to consider adopting additional systems to help identify and assess digitally modified content.
Cases involving insurance fraud remain a consideration for insurers operating in the UK. According to the Association of British Insurers (ABI), 84,400 fraudulent claims were identified in 2023, representing an increase of 16% compared with the previous year. These claims had a combined value of £1.1 billion, with the average case valued at approximately £13,000.
Motor insurance accounted for a significant proportion of these cases. Insurers recorded 45,800 fraudulent motor claims during the year, with a total value of £501 million. This marked an 8% increase in the number of motor-related cases compared with 2022.
In October 2024, the Home Office introduced the Insurance Sector Fraud Charter. The initiative aims to support greater coordination between the government and insurance industry in efforts to address fraudulent behaviour.
The ABI has noted that managing fraud risk is important for maintaining confidence in insurance services and for controlling costs across the market. Insurers continue to invest in tools and systems intended to assist with detection and prevention.
