Project Abstract

Abstract
The rise in fraudulent activities within the insurance industry has led to significant financial losses for insurance companies and policyholders alike. To address this issue, the development of advanced technologies such as machine learning models has become imperative. This research project focuses on the development of a machine learning model specifically designed for fraud detection in insurance claims. The primary objective of this study is to design and implement a machine learning algorithm that can effectively identify and flag potential fraudulent insurance claims. The research methodology involves collecting a large dataset of historical insurance claims, including both authentic and fraudulent cases, to train and test the machine learning model. Various machine learning techniques such as supervised learning, anomaly detection, and ensemble methods will be explored to determine the most effective approach for fraud detection in insurance claims. The literature review section provides a comprehensive overview of existing research on fraud detection in insurance using machine learning models. It covers topics such as the types of insurance fraud, common fraud detection techniques, and the advantages of using machine learning in fraud detection. The findings from the research methodology chapter will be discussed in detail in the results and discussion section. This will include the evaluation of the performance of the machine learning model in detecting fraudulent insurance claims, as well as comparisons with traditional fraud detection methods. The implications of the research findings for the insurance industry and potential areas for further research will also be addressed. In conclusion, the development of a machine learning model for fraud detection in insurance claims has the potential to significantly improve the efficiency and accuracy of fraud detection processes within the insurance industry. By leveraging advanced technologies such as machine learning, insurance companies can enhance their ability to detect and prevent fraudulent activities, ultimately leading to a more secure and trustworthy insurance ecosystem.

Project Overview