Insurance Bureau of Canada (IBC) wants to protect honest policy holders by detecting and prosecuting organised insurance fraud. IBC is gathering some powerful ammunition to defeat the fraudsters who are the insurance industry's arch-adversary. Historically, fraud is said to account for 10 to 15 percent of insurance company losses, and to drive up claims costs. In the insurance industry, fraud can span from opportunistic exaggerated claims to organised multimillion dollar rings involving staged collisions and dishonest towing companies, repair shops, paralegals and medical clinics.
IBC is gathering some powerful ammunition to defeat the fraudsters. Until now, identifying and prosecuting fraud rings that account for significant fraudulent losses has been a manual process that depends on insurers and the keen eye of a front line insurance adjuster or an informant's tip. But now the insurance industry has technology on its side. IBC has worked with IBM to analyse huge volumes of claims information insurance companies have in their claim files. The result may be a solution to the problem of identifying insurance fraud in its early stages—away to quickly and efficiently identify potentially fraudulent claims and link them with the organised crime rings that profit from them.
To read more, download the whitepaper below.