Insurance group Link has deployed an automated fraud detection tool to highlight potentially fraudulent motor insurance...
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.