Identity Fraud: A $50 billion opportunity in disguise for insurance companies
Identity fraud isn’t slowing down. In fact, it’s accelerating.
According to recent projections, global identity fraud losses will pass $50 billion by 2025, driven by phishing, synthetic identities, and data breaches across digital ecosystems. For insurance providers, this growing crisis is not just a threat. It’s a massive opportunity to offer high-value, proactive solutions.
Enter identity fraud solutions for insurance: bundled tools and services that go beyond claims and coverage to actively protect customers in their everyday digital lives.
What’s driving the surge in identity fraud?
As more of life moves online, and with generative AI and dark web data trading on the rise, identity theft has become faster, smarter, and far more widespread.
Key trends include:
- Synthetic identity fraud, where fake personas are created using real and fabricated data.
- Phishing and account takeovers, primarily through mobile apps and SMS.
- Credential stuffing, using leaked passwords to access personal accounts.
- Digital impersonation, aided by AI-generated photos, voices, and documents.
Traditional insurance offerings aren’t built to handle these threats, but privacy and identity protection bundles are.
A new layer of protection: Digital identity bundles
Leading insurers are now bundling digital identity protection with their offerings, helping policyholders stay ahead of fraud and bounce back faster when it strikes.
Bundled identity fraud tools may include:
- Virtual cards for safer online purchases
- Masked phone numbers and emails to protect personal contact info
- Dark web monitoring and breach alerts
- Credit and identity theft monitoring
- Wallet-based credentials for secure authentication and claims access
By embedding these tools into policies, insurers add measurable value to customers’ lives while opening up entirely new lines of business.
Why identity protection is a smart revenue play
Here’s what makes identity fraud solutions so attractive for insurers:
- Recurring revenue potential from subscription-based privacy tools
- Cross-sell and upsell opportunities during digital onboarding and renewals
- Improved retention through proactive risk reduction and service stickiness
- Lower fraud-related claims through early detection and secure communication
- Differentiation in a market where most offerings feel commoditized
Plus, identity protection is a need that transcends age and demographics. Whether you’re protecting a retiree from phishing or a young family from account takeover, the value is straightforward to communicate.
Leading with privacy builds trust
Consumer surveys show growing demand for brands that prioritize privacy:
- 81% of consumers say a company’s data practices influence their buying decisions
- 72% are more likely to stay loyal to brands that give them control over personal data
Offering embedded identity protection doesn’t just reduce fraud, it sends a powerful signal. You’re not just selling policies. You’re safeguarding your customers’ digital lives.
Getting started: Partnering for success
Insurers don’t need to build these tools in-house.
Partnering with privacy and identity technology providers allows you to:
- Launch fast with white-labeled apps or SDKs
- Customize offerings for different policyholder segments
- Integrate into existing claims, onboarding, and renewal flows
From virtual communications to secure claims access, everything can be built into the policy experience, no heavy development is required.
In 2025 and beyond, identity fraud solutions for insurance won’t just be nice to have, they’ll be expected. Consumers are looking for comprehensive protection, and insurers that deliver it will earn more than just premiums. They’ll earn long-term loyalty, new revenue, and a strong position in a digital-first world.
Ready to differentiate your insurance offering with identity fraud protection?
Anonyome Labs provides white-label privacy and identity tools tailored for insurers. Request a demo to see how you can unlock new growth with Privacy as a Service.
