What is the purpose of insurance fraud detection systems?

The primary purpose of insurance fraud detection systems is to identify and prevent fraudulent claims. These systems are designed to analyze patterns of behavior, detect anomalies, and flag suspicious activities that may indicate fraud. By recognizing potentially dishonest claims before they are paid out, these systems help protect both the insurance company and its policyholders from the financial and operational impacts of fraud.

While the other options relate to aspects of insurance operations, they do not capture the core function of fraud detection systems. Calculating premiums, streamlining the claims process, and enhancing customer service are important but separate objectives of insurance companies that do not specifically address the need to combat fraud. The focus of fraud detection is on maintaining the integrity of the insurance process by ensuring that only legitimate claims are honored.