Damage photos produced by artificial intelligence shake the insurance system

Vehicle damage images created and edited with artificial intelligence stand out as a new problem area in insurance fraud. While the insurance company Admiral reports that there has been a significant increase in such cases throughout 2025, it states that the manipulation of images and the production of documents that do not actually exist are especially effective in this increase. The problem is no longer limited to fake documents; Photos of vehicle damage can also be digitally altered to create a more serious picture than the real thing.

The examples cited by the BBC show how concrete this method has become. In one case, it was determined that the plate in the image of a damaged Land Rover was changed by artificial intelligence, and the same vehicle was used again in another application with a different plate. In addition, in another example, the damage to the rear of the vehicle was shown to be more severe than it actually was. Admiral states that these applications were noticed by the company’s fraud detection teams before the payment was made.

According to the data shared by the company, insurance fraud cases increased by 71 percent in 2025 compared to the previous year. Part of this increase is attributed to artificial intelligence tools that have become easier to access in visual editing and document production. This situation does not only concern those who attempt fraud; The cost burden incurred in the system can be directly reflected on consumers.

Artificial intelligence-supported visuals are changing insurance processes

While traditional fraud methods feature fake documents or fabricated statements, nowadays convincing visuals can also be presented as “evidence”. This causes insurance companies to create a new layer of control in their damage assessment processes. Now, not only the accuracy of the documents but also the reliability of the photographs sent are examined in detail.

In addition, arrangements made with artificial intelligence can be used in different scenarios. While some applications are based on portraying real damage as greater than it is, some consist of fake claims supported by completely fictional documents and images. While this diversity makes it easier for fraud attempts to scale, it also makes the detection process more complex.

Insurance companies are trying to develop technological solutions against these developments. It is aimed to prevent such attempts with methods such as visual analysis tools, metadata reviews and sector-wide information sharing. Despite this, the constant development of artificial intelligence tools requires that control mechanisms be updated at the same pace.

On the other hand, the costs caused by fraud are not limited to companies only. Insurers state that increased losses may be reflected in premium prices. This may cause honest applicants to face higher fees. In addition, the review process for damage applications is becoming more stringent, which may lead to longer procedures.

The Admiral emphasizes that presenting false or exaggerated evidence can have serious consequences. If such attempts are detected, applications may be rejected, policies may be canceled and, in some cases, legal proceedings may be initiated. With the spread of content produced with artificial intelligence, visual verification checks are expected to become a more standard practice in insurance processes.

Although some technology companies have developed marking methods such as watermarks for images produced with artificial intelligence, these applications have not yet become an industry-wide standard. For this reason, the need to develop both technical and regulatory measures together in the insurance sector is becoming more prominent.