A supplemental health insurer was looking for a way to proactively combat insurance claim fraud amid increasing transaction volumes. Their existing detection systems could no longer keep up with the volume or velocity of claims, so they turned to Coforge for an answer.
The Challenge
A leading US supplemental health insurer was facing a surge in fraudulent claims along with a dramatic rise in transaction volumes, which made it increasingly difficult to detect the signal against the noise.
Manual investigations couldn’t keep up, and rule-based systems were not intelligent enough to detect increasingly sophisticated fraud schemes.
The result was slower detection, missed red flags, and ultimately, financial losses. They needed a scalable, AI-driven solution that could proactively identify suspicious claims in real-time and reduce their reliance on retrospective analysis.
Our Approach
We implemented a scalable, AI-powered fraud detection solution built on a scalable data architecture. Using a combination of advanced analytics and AI techniques, it enables real-time risk scoring to classify claims and flag anomalies far faster than before. We also developed robust dashboards that provide automated daily and weekly fraud analytics reporting.
Data Architecture
Centralizes all information and enables the insurer to run real-time inference and generate dynamic risk scores for all claims as they are submitted.
Ensemble Modeling
Multiple AI models were trained to analyze incoming claims and compare their individual risk predictions to eliminate bias and errors, reduce variance, and arrive at a consensus on the riskiest claims.
Graph Convolutional Networks (GCN)
By representing entities like policyholders, claims, and providers in a graph, GCNs can uncover hidden relationships such as shared addresses or phone numbers to identify fraud more effectively than analyzing individual transactions.

Impact to Date
3x
5%
- Used Graph Neural Networks to model relationships between different claims for anomaly detection
- Built an ensemble model that differentiated fraud classes with higher accuracy
- Delivered a real-time dashboard for fraud alerting and case tagging
- Enabled early fraud discovery by analyzing contextual data from devices, agents, and providers
By leveraging advanced AI analysis techniques, the insurer gained the ability to flag high-risk claims instantly, shifting their focus from trying to uncover fraud after the fact to proactive, real-time intervention.
