Insurance Industry Tackling Fraudulent Applications Through Device Intelligence

First party fraud remains dominant in the insurance industry accounting for almost 80 per cent of all frauds. It’s a figure that has been rising steadily since 2013 [1].

General insurers detected 118,500 cases of attempted claims fraud in 2013 totaling almost £1.3bn, an 18 per cent increase in value compared to 2012 [2].

 

The numbers reflect the insurance industry’s determination as a whole to tackle the cost and impact of fraudulent claims. It’s not only putting pressure on the profits and resources of providers, it’s weighing down the purses of consumers too. In fact, application fraud is estimated to be contributing on average an extra £50 to every household’s annual insurance bill [1].

The identification of false documents at the point of application across the industry alone increased by over 8 per cent in the first half of 2014 than during 2013 [1].

One way of detecting fraud at the point of application is by taking a multi-layered anti-fraud strategy combining analytics and device intelligence.

Confused.com is one such organisation taking this approach. It is the first price comparison site to provide UK insurers with real time alerts to identify high-risk and fraudulent quotations perpetrated by suspicious devices. By partnering with Experian Decision Analytics to implement FraudNet, with its integrated device intelligence, Confused.com is providing a real time assessment of quotes that pose a fraud risk up-front.

The FraudNet solution has already proved highly successful in preventing online fraud for many of the world’s largest companies, while providing a seamless online experience for valid customers. From April 2015, it will be in place to help insurers identify potentially suspicious devices that pose a threat of generating fraudulent quotations.

You can find out more about FraudNet at the following link – click here.

[1] Experian Interim Fraud Report 2014

[2] ABI UK Insurance key facts 2014