Insurance fraud figures and trends
According to the Banana Skins 2025 report by PwC, digital fraud is one of the top three threats to the insurance industry, along with cyber-attacks and misuse of artificial intelligence. Insurers are adopting technology such as machine learning to detect suspicious patterns and prevent fraudulent claims. This sector is particularly vulnerable because it is based primarily on trust and on the validity of the statements.
In the insurance field, fraud usually entails making false statements, contracting using fake identities or tampering with government or medical documents.
However, beyond mere detection, the true challenge lies in proving fraud. In digital settings, identifying fraud is not enough: it must be proven with legal assurances. In this regard, digital trust becomes a core element. Logalty offers your company the peace of mind of knowing that each identification, communication and digital transaction has full legal validity.
Solutions to fraud in the insurance sector
Verified digital identification: security from initial contact
The greatest risk is entailed in the customer onboarding process, and knowing that artificial intelligence is capable of generating thousands of fake identity documents per day —many of them undetectable by simple OCR readings— and that the latest European legislation (the amended eIDAS Regulation) establishes fines of up to 5 million euros, or 1 % of turnover, for trust service providers (TSP) that do not correctly verify an individual’s identity when issuing certificates, it is crucial to enhance identification processes.
Therefore, at Logalty we offer a digital identification service based on an NFC reading of the chip in the identity document, in order to safely and remotely verify that each customer is who they claim to be.
Since the solution is based on an NFC, rather than an OCR, reading, the data obtained is the original document data. Thus, the information received by the insurer —restricted solely to what is needed for the business process (data minimisation)— is authentic. Furthermore, the fact that Logalty is a Qualified Trust Service Provider affords differential value over purely technological solutions, since it is possible to verify the validity of the identity documents and detect possible revocations due to fraud or loss.
And in compliance with the eIDAS 2 Regulation, which introduces the e-Attribute Declaration, we issue a digital declaration at the end of the process that links the verified attributes to a person, allowing them to be safely used in digital transactions.
Electronic signature with full legal validity
Logalty’s individual validation solution based on NFC reading can be set up in numerous ways. One way is by setting the parameters for the Identified Holder, which adds an additional layer of security beyond mere validation of the user by means of an NFC reading. This is achieved through biometric verification of the user and issuance of an advanced electronic signature certificate, which is used to electronically sign the attributes included in the e-Attribute Declaration.
In a unique process, once the person has been identified, the contract can be signed with this certificate. This set-up is recommended especially in the case of businesses subject to money laundering prevention standards, such as life insurance or investment funds.
Logalty offers three types of electronic signature (simple, advanced and qualified), which the insurer can set up depending on the risk and type of document to be signed: contracts, health questionnaires, direct debit orders, agreements, insurance claims, and technical inspections, to name a few.
Logalty’s signature processes ensure the availability of the documents in advance, and that the signed documents are correctly formalised and binding —including the signatory’s attachments— and delivered to all the participants, generating proof of delivery in a durable medium with full legal validity. This allows companies to operate with maximum certainty, efficiency and trust.
At the end of the process, Logalty issues a Certificate of Evidence, which documents the exact time of each step and ensures the integrity of the documents by depositing them with a notary; all the documents are stored for the period of time indicated by the insurer, offering customers legal assurance and means of defence should a conflict arise.
The result: safe processes that deter fraudulent claims in drawing up contracts by providing irrefutable proof of the signatory’s intentions.
Certified electronic contracting: speed and security
Logalty’s solution is fast, flexible, comprehensive and secure, offering a wide range of functions to adapt to diverse processes and needs:
- Multi-channel: carrying out transactions via any contact channel: in person, agents, brokers, online or call centre with online assistance.
- Multi-document: one or more documents can be signed in a single transaction.
- Multi-signatory: several participants can sign in a single process, identifying their roles (policyholder, insured, legal representative, etc.) and the documents to be executed by each one.
- Multilingual: Logalty’s processes are currently available in 12 languages.
- Configurable forms and documents: integration of forms to be filled out by the participant, uploading of additional documents and verification of the signatory’s identity.
In addition, through video call contracting (using Logalty’s IDon solution) all the paperwork can be done with the assistance of a manager, thus generating trust and allowing users to close the sale in real time.
Certified electronic communication: traceable legal communication
Logalty offers numerous certified communication services, which are tailored to the importance of the document and the level of proof required. Logalty’s Certified Communication services are wide-ranging: certified postal notification, certified electronic notification, eIDAS electronic notification, certified electronic communication with or without identification, email, certified SMS and ordinary post.
In all these services, Logalty provides proof of issuance, contents and delivery. Delivery to the recipient can be guaranteed under the Certified Postal Notification, Certified Electronic Notification and Certified Electronic Communication services. With the Certified Email and SMS services, on the other hand, for technical reasons (the server might open the email message, for example), delivery to the recipient cannot be guaranteed, but Logalty provides and guarantees delivery to the server.
Electronic Notification services are the most robust because they require a signature from the recipient for receipt. When this signature is issued using a qualified certificate, the burden of proof is inverted: in the event of a legal dispute, the recipient must be the party to prove that they did not receive the notification or that the contents thereof were not as indicated.
On the other hand, Electronic Communication services, unlike the notification services, do not require a signature for receipt, but can be configured to request the recipient’s identification. This function is used most often when the information sent contains sensitive data pursuant to the GDPR, because the data are not sent unencrypted and access to the document is subject to the identification required by the insurer. This combination of guaranteed delivery and data confidentiality cannot be offered in the certified email service. Notification and communication services can be used to report changes in contract clauses, information on claims, contract termination and insurance cancellations. They are also used in debt collection procedures and for issues related to employees.
Electronic Notification helps mitigate the risk of not passing audits or compliance processes, given the strict regulatory requirements applied in the sector.
Furthermore, following the approval of Spanish Organic Law 1/2025 (MASC, in Spanish), which stipulates that both the offer and acceptance thereof must be sent in a way that provides a record of the provider’s identity, effective receipt by the other party and the date on which it is received, as well as the contents and confidential nature of the binding offer, it is essential to use certified electronic communication or notification services, as the only ones that meet these legal requirements.
Digital trust: the key to fighting insurance fraud
In all of Logalty’s processes, each digital interaction is backed by certified evidence that is valid as proof, which boosts customers’ trust and protects the entity from possible fraud or legal disputes.
Logalty relies on security systems certified according to ENS and ISO 27001, with data encryption, constant 24×7 monitoring and advanced access controls to protect critical information.
The fight against insurance fraud is not based solely on controls, but also on digital trust.
Thanks to our qualified services, Logalty helps insurers operate with legal certainty, speed and complete traceability, as the drivers behind a more transparent, profitable and sustainable model.
