Roosevelt Road Specialty Launches FraudX: AI-Powered Frontline Defense Against Insurance Fraud

Building on a reputation for rigorously tackling bad-faith claims, Roosevelt Road Specialty is now supplementing its legal offensive with artificial intelligence. Instead of reacting to fraud after losses have occurred, the AI system will sift through large volumes of claim submissions, flagging those with irregularities for immediate review.

Roosevelt Road Specialty is partnering with EyeLevel.Ai to develop a program called FraudX. When FraudX flags a claim that appears to be fraudulent, it will trigger a cascade: in-depth review by internal claims staff, consultation with the company’s robust team of in-house attorneys and private investigators, and, if warranted, legal action to recover paid-out proceeds. The result is a more agile, front-line defense against fraudulent claims.

“Our investment in AI-driven fraud detection reflects our commitment to staying on the front lines of risk management,” said Roosevelt Road Specialty CEO Daniel Hickey Jr.

FraudX’s role isn’t to replace legal investigation, but to enhance it. The AI platform will be able to surface questionable claims within minutes or hours, saving weeks of manual audits. As a result, legitimate claims will be paid faster.

“FraudX will help save time, reduce legal costs, and allow our team to focus on legitimate claims,” Hickey said.

Neil Katz, the co-founder and chief operating officer of EyeLevel.Ai, said he and his team spent months meeting with claim professionals and the legal team at Roosevelt Road Specialty to develop 35 indicators of possible fraud. Each claim will get a fraud score between zero and 100 percent. If a claim, for example, has all 35 indicators of fraud, it will receive a fraud score of 100 percent.

“Together AI and humans is a very powerful combination to find fraud and find it fast,” Katz said. “FraudX will detect fraud in minutes instead of months.”

Katz said FraudX, however, will not take the place of human investigators at Roosevelt Road Specialty.

“They do depositions, they talk to people, they investigate claims, they dig deeper than just an AI can do alone and they’re always double-checking work of an AI,” Katz said.

FraudX will also allow Roosevelt Road Specialty to pay legitimate claims faster.

“We pride ourselves at Roosevelt Road Specialty on quickly resolving legitimate claims to assist an injured worker,” Hickey said. “Unfortunately, rampant insurance fraud by bad actors has slowed down the process for all claims. We look forward to making sure legitimate claimants get their money faster and are no longer victims of the fraud themselves.”

Hickey said insights from FraudX will also help inform underwriting decisions, either pricing more aggressively for high-risk segments or tightening terms accordingly.

“We always put our brokers first and by preventing fraudulent claims from driving up costs, we’re helping our brokers deliver more competitive coverage,” Hickey said.

Roosevelt Road Specialty plans to roll out FraudX initially within its construction general liability vertical, Tradesman Program Managers, to address a high-volume of fraudulent claims from staged construction accidents. The company plans to expand the AI platform to its other verticals including its sports, leisure and entertainment coverage line, Renaissance, its habitational coverage line, RISE, and its senior care line, CareAgents.

Roosevelt Road Specialty already integrates AI, such as dash-cams and sensor-based loss-control tools, across its underwriting verticals, including in its commercial auto coverage. FraudX is the next stage in a broader tech-driven push, bridging underwriting, claims, and loss control.

Roosevelt Road Specialty is no stranger to tackling insurance fraud head-on. Through Tradesman, Roosevelt Road Specialty has launched aggressive investigations into staged construction accidents, collusion between medical providers and attorneys, and fraudulent documentation. As a result, the company has filed five federal Racketeer Influenced and Corrupt Organizations Act (RICO) suits targeting doctors, lawyers, and medical centers. FraudX extends that same determination into everyday claim handling.

Roosevelt Road Specialty’s AI fraud-detection initiative signals a major shift in insurance fraud prevention. Rather than relying solely on reactive measures, the company is adopting an intelligence-driven model. In doing so, they’re not just reducing losses - they’re reshaping the role of MGUs in safeguarding the integrity of insurance systems across the market.

“At Roosevelt Road Specialty, we believe protecting the integrity of the insurance system starts with proactive intelligence, not just reactive defense. By leveraging advanced AI tools, we’re setting a new standard for how MGUs can lead the charge in uncovering fraud, preserving capital, and restoring trust across the market,” Hickey said.