Insurance fraud worldwide estimated to exceed $80b annually in 2025

Asia-Pacific reported a 22% year-on-year increase in fraudulent claims in 2023.

Insurance fraud worldwide is estimated to surpass $80b yearly, according to CoinLaw’s “Insurance Fraud Statistics 2025: Massive Losses Revealed” report.

“Whilst some sectors report fraud rates approaching 10%, industry-wide suspicious insurance payouts are generally estimated to be closer to 2% to 10%, depending on the line of business and jurisdiction,” the report stated.

Asia-Pacific reported a 22% year-on-year increase in fraudulent claims in 2023, driven by staged accidents and inflated submissions. 

Globally, auto insurance fraud rose 19% in 2023, highlighting the sector’s vulnerability to organised networks staging crashes for payouts.

Life insurance remains one of the hardest-hit categories, with losses approaching $75b a year worldwide. 

Property and casualty fraud accounts for about 10% of industry losses, translating to roughly $122b annually. 

Collectively, life and property losses exceed $300b globally, growing at more than 10% per year.

Technology has become central to tackling these risks. 

Predictive modelling, AI, and automated red-flag systems are now widely used, with the global fraud detection market projected to expand from $7.5b in 2024 to $9.05b in 2025, and up to $22.9b by 2029. 

Insurers using AI tools are seeing fraud reductions of 20% to 40%, depending on the case type.

Emerging threats such as deepfake impersonation, synthetic identity fraud, and voice-based scams are compounding risks across multiple markets. 

Insurers also reported a surge in staged property damage claims, with drones helping to uncover around $1b worth of fraudulent activity in 2023.

Despite advances in detection, fraud continues to push up costs and slow claims processing worldwide.