A New Approach to Detecting Insurance Fraud
Haopeng Yang, Liang Hong · Variance · 2025
Detecting insurance fraud is one of the most important problems for the insurance industry. While several methods have been proposed, no method provides provably valid predictions. Based on a general machine learning strategy, we propose a new method for detecting insurance fraud that guarantees finite-sample validity. The proposed method is distribution-free, tuning-parameter-free, and applicable to both continuous and categorical features. It can also be used to detect other types of fraud such as credit card fraud. Address for Correspondence: [email protected]