Insurance group Link has deployed an automated fraud
detection tool to highlight potentially fraudulent motor insurance
claims.
Trevor Webb, head of claims at Link, said the adoption of the
system, from software supplier Advances, was driven largely by the
firm's obligation to demonstrate to industry regulator the
Financial Services Authority that it is taking fraud seriously.
However, he said managing claims more efficiently had also brought
commercial benefits.
The insurer has been using the system for two months and
estimates it is identifying at least three times as many cases of
possible fraud than previously, though it is still some way short
of matching the estimated one in 10 cases of fraud that the
industry is as whole is thought to suffer.
The Advances system combines claims fraud detection from
Conversant Data and CSC's Fraud Evaluator to provide remote
analysis and scoring of claims data.
Link supplies the claims data daily for overnight
batch-processing, and is able to scrutinise all claims that are
flagged as "risk cases" by the Advances system.
The system uses triggers that are tuned and adjusted by Link to
generate the best possible output.
Prior to adopting Advances, Link used manual scorecards to
identify fraud, but it found the results were inconsistent, being
liable to generate false positives and miss some fraudulent
claims.