Artificial intelligence-powered editing tools are becoming a regular part of digital life, with data analytics and technology provider Verisk reporting that their growing use is affecting behavior in insurance claims.
In its latest Verisk State of Insurance Fraud study, the company said 36% of consumers would consider changing claims images or documents, even if doing so would violate their insurance company’s policies.
Insurers have simultaneously recorded a sharp increase in manipulated media, Verisk added, with 98% agreeing that AI-driven editorial tools are causing an increase in digital insurance fraud.
Verisk explained that it commissioned the study to assess how artificial intelligence could reshape risk, decision-making and outcomes across the insurance sector. The company cited its findings as evidence that technological capabilities are changing not only how claims are processed but also how consumers view acceptable behavior.
Shane Riedman, President of Anti-Fraud Analytics at Verisk, commented: “AI editing tools are changing the way people interact with digital content, and the insurance industry is feeling this shift in real time.”
“We are concerned that many consumers do not consider small modifications to be out of bounds, but when these changes make their way into claims, they can have a significant impact on outcomes. As manipulated media becomes more common, many insurers are under increasing 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 available, 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 authentic,” highlighting the difficulty of distinguishing doctored content from authentic material.
Verisk further noted that the risk of being manipulated by artificial intelligence is increasing, with 41% of consumers saying they know someone who uses these tools for financial gain, including in insurance-related scenarios. The company highlights that this rises to 64% among Gen Z and 54% among Millennials.
Verisk said 62% of consumers believe AI tools are often or very frequently used to manipulate insurance claim documents. From an insurer’s perspective, Verisk reports that the situation is almost universal, with 99% encountering altered or AI-generated materials and 76% saying such submissions have become more sophisticated in the past year. The company describes this as a growing operational challenge that makes it more difficult to distinguish routine digital edits from intentional fraud.
Verisk’s findings also point to what the company calls a growing ethics gap. While many consumers express clear boundaries in principle, Verisk said 36% would consider editing a statement to improve their chances of success, despite rules prohibiting such behavior.
The company highlighted generational differences, reporting that 55% of Gen Z and 49% of Millennials would consider editing, compared with 28% of Gen X and 12% of Baby Boomers.
Verisk further noted that attitudes vary depending on the type of editor. The company reports that 52% of consumers find it acceptable to adjust brightness or contrast, while 49% are willing to remove background elements.
However, Verisk draws attention to more serious behaviour, noting that 15% believe it is acceptable to exaggerate damage and 13% believe it is okay to create completely false images of damage. The company cited the findings as evidence that increasingly sophisticated tools may be regulating actions that directly impact claim outcomes.
From an industry perspective, Verisk reports that as digital fraud becomes more advanced, insurance companies are investing in detection capabilities. The company said 66% of insurers believe manipulated media fraud often goes undetected, driving greater use of third-party and in-house AI solutions. Verisk noted that 65% of insurance companies use externally provided AI detection tools, while 50% have developed in-house systems.
Despite these efforts, Verisk said confidence remains limited when dealing with more advanced manipulation techniques. The company reports that 58% of insurance companies are very confident in detecting editing of real images or videos, but this drops to 43% when assessing authenticity at scale and to 32% when identifying deepfakes.
“Insurers are not standing still, but threats are evolving faster than many systems can respond,” Reedman said. “Detection tools that are not fully integrated into claims workflows can create blind spots. As deepfakes and other AI-driven manipulations become more common, carriers will need more connected systems and shared intelligence to keep pace.”
Verisk highlights that the impact of AI-driven fraud is expected to extend beyond individual claims. The company reports that 69% of consumers believe that fraudulent activity will cause premiums to increase over time for all policyholders. Verisk added that 42% of respondents cited rising premiums as a major concern, while 36% noted that legitimate claims could be delayed or denied if altered documents are incorrectly flagged.
Looking ahead, Verisk said insurers expect continued changes over the next three to five years, including greater adoption of technology to combat fraud, greater regulatory consistency and stricter documentation requirements. The company also reported expectations of increased operating pressure, longer claims processing times and higher premiums.
“This is not a problem that any one insurance company can solve alone,” adds Verisk’s Reedman. “As digital manipulation technologies evolve and deepfakes become more common, many insurers are under pressure to close structural and operational gaps and move to more connected systems. Doing this 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 to maintain trust in the claims process.”
Verisk said the study, based on two national surveys including 1,000 U.S. consumers and 300 insurance claims professionals, was designed to assess how AI editing tools impact consumer behavior, fraud risk and insurer preparedness.
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