The data: More than a third of consumers (36%) say they'd be at least somewhat likely to edit a claim photo or document even if it breaks insurer rules, per a Verisk study. The generational split is sharper still: a majority of Gen Zers (55%) and nearly half of millennials (49%) would consider digitally editing a claim to strengthen their case.

Digging into the data: The willingness to commit outright fraud is smaller but meaningful: 15% of consumers say misrepresenting claim evidence is acceptable, and 13% say the same for fabricating a photo of damage that never happened. Insurers are already seeing the shift land. Nearly all (98%) say AI-powered editing tools are fueling a rise in digital fraud, and 76% report that manipulated claims submissions have grown more sophisticated in the past year.

Zoom out: Insurers have been deploying genAI and machine learning for fraud detection for years, including for automated claims review, estimating losses, and customer service. But insurers’ confidence drops sharply as the manipulation gets more sophisticated: While 58% are very confident they can spot edits to real photos, just 32% say they could identify a deepfake, per Verisk. 

Implications for insurers: Insurers can't wait for AI companies' guardrails to catch up. They need models trained on AI-manipulated media, policy language that spells out penalties for AI-assisted manipulation, and adjusters trained to handle the cases those models escalate.

The harder problem is speed. The insurance industry has been an early mover on AI adoption, but most insurers remain stuck in pilot, with 67% testing genAI programs and only 7% having scaled them, per BCG. Fraud defense won't be the exception, and carriers stuck in siloed pilots will fall further behind as manipulation techniques evolve.

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