Guest post by Tony Boobier, IBM Business Analytics Insurance Leader, EMEA. When in 1871 Queen Victoria opened the Royal Albert Hall in London, named after her husband, it’s unlikely that she would have predicted it would be the home of the British Insurance Awards, and that 150 years later the topic of fraud detection would be recognized for special attention.
Each year the Great and the Good of the UK insurance industry meet to recognize major achievements in the industry. It’s a splendid event, my team have been shortlisted a couple of times, and I even picked up a winners award in 2003 for Claims Initiative of the Year.
Ten years on, it’s still a popular event and, already high on insurers’ agenda, the topic of insurance fraud was further highlighted by the award going to the Metropolitan Police Service’s ‘Operation Catcher’ team, landing it the 2013 British Insurance Award for Service Provider of the Year The team describes its main objectives as “reducing the number of people killed and seriously injured on the road; and investigating, disrupting and ultimately prosecuting those seeking to defraud the UK insurance industry”.
Fraudulent motor claims alone cost the UK insurance industry £350m ($585m) annually and add about £50 ($80) to each individual motor policy annually, and the real cost to society is much higher as organised criminal groups behind motor insurance fraud are often associated with more serious crimes such as drugs trafficking
Working in conjunction with UK insurers and the Ministry of Justice, it’s been essential for the police fraud investigation team to develop innovative techniques. Whilst obviously they aren’t keen to publicly share with criminals their ‘tricks of the trade’, the police are no strangers to the use of an analytical approach to assist in their enquiries. (Click here to learn more.)
Predictive analytics are increasingly part of the investigators toolkit, be they police or insurers. Learn more about IBM i2 fraud intelligence and watch this overview video:
Business Analytics Insurance Leader, EMEA