Tech­nol­ogy A Dou­ble-Edged Sword Against In­sur­ance Fraud

IN­SUR­ANCE FRAUD IS ON THE RISE AROUND THE WORLD AND IN­SUR­ERS HAVE STARTED TO FEEL THE PINCH. IN 2013, GEN­ERAL IN­SUR­ERS DE­TECTED 118,5001 CASES OF AT­TEMPTED CLAIMS FRAUD IN THE UNITED KING­DOM WHERE 12 IN EV­ERY 10,000 AP­PLI­CA­TIONS AND CLAIMS WERE FOUND TO B

Insurance - - FEATURE - Text Marcelo Kek­li­gian | Man­ag­ing Di­rec­tor | Ex­pe­rian De­ci­sion An­a­lyt­ics, Asia Pa­cific

Pop­u­lated cities such as Brazil, home to one of the largest in­sur­ance mar­kets, are also be­ing hit where the cases of sus­pi­cious in­ci­dents, de­tected fraud and proven fraud to­talled R$2.6 bil­lion of to­tal busi­ness in 2011. It is es­ti­mated that cases of fraud are be­tween 10 to 15 per cent of to­tal claims paid, amount­ing to R$3.6 bil­lion a year. In­dus­tries most sus­cep­ti­ble to this are auto in­sur­ance, life in­sur­ance, health in­sur­ance, and prop­erty in­sur­ance3. Ac­cord­ing to Ex­pe­rian’s 2014 In­terim Fraud Re­port, first party claims re­main dom­i­nant, ac­count­ing for al­most 80 per cent of all fraud claims4, putting pres­sure on the need to de­tect fraud at the point of ap­pli­ca­tion.

ASIA PA­CIFIC HAS TREMEN­DOUS EX­PO­SURE TO FRAUD WITH AD­VANCE­MENTS IN TECH­NOL­OGY

In the Asia Pa­cific re­gion, this trend is also pick­ing pace. In 2011, in­sur­ance claims fraud cost Malaysia an es­ti­mated RM12 mil­lion. Even in Sin­ga­pore, ac­cord­ing to the Gen­eral As­so­ci­a­tion of Sin­ga­pore, it is es­ti­mated that the per­cent­age

1 ABI UK In­sur­ance key facts 2014 2 Ex­pe­rian In­terim Fraud Re­port 2014 3 Sur­vey of the Na­tional Con­fed­er­a­tion of Gen­eral In­sur­ance, Pri­vate Pen­sion and Life, Health

In­sur­ance and Cap­i­tal­iza­tion (CNseg) 4 Ex­pe­rian Fraud Re­port 2014

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