Artificial intelligence-powered editing tools are becoming a routine part of digital life, and data analytics and technology provider Verisk reports that their growing use is now influencing behaviour within insurance claims.
In its latest Verisk State of Insurance Fraud study, the company states that 36% of consumers would consider altering a claim image or document even if doing so breached insurer rules.
Verisk adds that insurers are simultaneously recording a sharp increase in manipulated media, with 98% agreeing that AI-driven editing tools are contributing to a rise in digital insurance fraud.
Verisk explains that it commissioned the research to assess how artificial intelligence is reshaping risk, decision-making and outcomes across the insurance landscape. The company presents its findings as evidence that technological capability is not only changing how claims are handled, but also how consumers perceive acceptable behaviour.
“AI editing tools are changing how people interact with digital content, and insurance is feeling that shift in real time,” commented Shane Riedman, president of Anti-Fraud Analytics at Verisk.
“Our concern is that many consumers don’t see small edits as crossing a line, but when those changes make their way into claims, they can materially affect outcomes. As manipulated media becomes more common, many insurers face growing pressure to establish clearer boundaries, improve visibility, and prevent fraud – while preserving 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”, reinforcing how difficult it can be to distinguish altered content from genuine material.
Verisk further notes that exposure to AI-enabled 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% among Generation Z and 54% among millennials.
Verisk states that 62% of consumers believe AI tools are used often or very often to manipulate insurance claim documentation. From the insurer perspective, Verisk reports near-universal exposure, with 99% encountering altered or AI-generated materials and 76% stating that such submissions have become more sophisticated over the past year. The company characterises this as a growing operational challenge that is making it harder to separate routine digital edits from deliberate fraud.
The findings from Verisk also point to what the company describes as a widening ethical gap. While many consumers express clear boundaries in principle, Verisk states that 36% would still consider editing a claim to improve its chances of success, despite rules prohibiting such actions.
The company highlights generational differences, reporting that 55% of Generation Z and 49% of millennials would consider making edits, compared with 28% of Generation X and 12% of Baby Boomers.
Verisk further notes that attitudes vary depending on the type of edit. The company reports that 52% of consumers consider adjusting brightness or contrast acceptable, while 49% are comfortable removing background elements.
However, Verisk draws attention to more serious behaviours, stating that 15% believe exaggerating damage is acceptable and 13% consider it permissible to create entirely false images of damage. The company presents these findings as evidence that increasingly sophisticated tools may be normalising actions that directly influence claim outcomes.
From an industry standpoint, Verisk reports that insurers are investing in detection capabilities as digital fraud becomes more advanced. The company states that 66% of insurers believe manipulated media fraud frequently goes undetected, prompting increased use of both third-party and in-house AI solutions. Verisk notes that 65% of insurers use externally provided AI detection tools, while 50% have developed internal systems.
Despite these efforts, Verisk indicates that confidence remains limited when dealing with more advanced manipulation techniques. The company reports that 58% of insurers feel very confident detecting edits to genuine images or videos, but this falls to 43% when assessing authenticity at scale and to just 32% when identifying deepfakes.
“Insurers aren’t standing still, but the threat is evolving faster than many systems were built to handle,” Riedman said. “Detection tools that aren’t fully integrated into claims workflows can create blind spots. As deepfakes and other AI driven manipulation become more common, the carriers will need more connected systems and shared intelligence to keep pace.”
Verisk emphasises that the impact of AI-driven fraud is expected to extend beyond individual claims. The company reports that 69% of consumers believe fraudulent activity will lead to higher premiums for all policyholders over time. Verisk adds that 42% cite rising premiums as a primary concern, while 36% point to the risk of legitimate claims being delayed or denied if altered documents are incorrectly flagged.
Looking ahead, Verisk states that insurers anticipate continued change over the next three to five years, including increased adoption of technology to counter fraud, greater regulatory consistency and stricter documentation requirements. The company also reports expectations of added operational pressure, longer claims processing times and higher premiums.
“This isn’t a problem any one insurer can solve in isolation,” Verisk’s Riedman added. “As digital manipulation techniques evolve and deepfakes become more prevalent, many insurers are under pressure to close structural and operational gaps and move toward more connected systems. Doing that effectively will require shared intelligence and better integration – not only to keep pace with increasingly sophisticated fraud, but to help ensure legitimate claims continue to be paid quickly and fairly, and trust in the claims process is preserved.”
Verisk states that the study is based on two national surveys, including 1,000 US consumers and 300 insurance claims professionals, designed to evaluate how AI editing tools are influencing consumer behaviour, fraud risk and insurer preparedness.
