The Canadian National Insurance Crime Services has just signed a five-year deal with a U.K. firm to detect suspicious auto claims, with Ontario industry data first to be analyzed.
BAE Systems Detica – a global analytics service headquartered in the U.K. with offices in Canada – has several national insurance bodies and global insurance companies as clients, which will help develop a solution that will analyze data from Ontario, with an eye to adding other provinces in the future, says Ben Kosic, CEO of CANATICS.
“We chose BAE Systems Detica as our partner because they have the knowledge, skills and services to give the Canadian auto insurance industry superior intelligence from analytics on industry-pooled data,” says Kosic. “By working with Detica, we will ensure our member insurers’ investigators focus on the right claims to reduce organized and premeditated fraud in Canada.”
CANATICS’ mandate is to analyze pooled auto insurance industry data, using the most current tools, to identify suspicious claims that individual insurers can then investigate.
"We are truly committed to helping the Canadian insurance industry combat fraud for the benefit of Canadians,” says Chris Green, managing director of financial crime with BAE Systems Detica. “Our experience with other national insurance bodies, such as the Insurance Fraud Bureau in the U.K., shows that the best way to combat insurance fraud is for a wide range of insurers to pool and analyze their data centrally. As a consequence, fraudsters can less easily escape detection.”
As a result of the deal, BAE Systems Detica will expand its Canadian business based in Toronto and its global insurance fraud prevention offering. Detica’s NetReveal anti-financial-crime solutions are currently used by over 130 clients spanning four continents, including six of the top 10 financial banking and insurance institutions in the world. (continued.)
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Although new to Canada, CANATICS is based on similar organizations elsewhere. The Insurance Fraud Bureau in the U.K. and the National Insurance Crime Bureau in the U.S. have analyzed pooled industry data for years to identify organized fraud activity.
In Ontario, the final report of the Automobile Insurance Anti-Fraud Task Force, released in November 2012, recommended that “insurers should move aggressively to establish an organization that would pool and analyze claims data in order to identify potential cases of organized and premeditated fraud.” CANATICS was established to provide this service to insurers.
Those recommendations have turned into tangible results, as stepped-efforts to combat fraud in the province were highlighted by the recent prosecutions of three Toronto-area rehabilitation clinics that were convicted of multiple offences resulting from co-operative investigations involving
Insurance Bureau of Canada Investigative Services, multiple insurers, police, and the Financial Services Commission of Ontario, as part of ‘Project Whiplash.’
