Insurance fraud is seen as arguably the biggest issue facing the sector today with the Association of British Insurers estimating that detected fraud costs more than £1 billion a year and adds £50 to the cost of the average home insurance policy – with undetected fraud thought to cost an additional £2 billion a year.
Now, however, one insurance firm is fighting back with a host of new initiatives that will strengthen its fraud security.
Ageas has become the first insurer in the market to use Quote Intelligence Service (provided by Insurance Initiative Limited (IIL)) for its direct brands (Rias and Castle Cover) and its partnership business. Now a customer’s current quote can be compared with previous quotes to identify key variables to determine potential fraud or claims risk. Using elements of ‘quote behaviour’ should enable a more accurate and early risk assessment to limit the financial impact of fraud on customers and passing on more accurate and favourable premiums to genuine customers.
The IIL hub provides access to multiple data sources using a single enquiry message via a link. Results from all data sources are then combined and summarised into one response message and integrated with Ageas’s systems to highlight any risks.
Speaking about the introduction of the new initiatives, John Hooper, executive chairman at IIL, commented that big data is key in offering consumers enhanced benefits.
“Ageas is welcoming the use of big data and the customer and business benefits it brings, and this new exciting development will enhance its current capabilities,” he said.
To further strengthen its fraud approach, Ageas has also appointed Chris Andrew as head of fraud for the direct brands and partnership channel (excluding claims fraud). Chris has almost 25 years of experience in fighting financial crime, insurance fraud management and consulting in the UK, Europe and Africa. With roles at the National Crime Squad,
Zurich,
AIG and most recently BAE Systems, Chris’s experience incorporates consultative, managerial, investigative and technology-led approaches to fraud and financial crime.
In his new role, Chris is responsible for developing, driving and managing the anti-fraud strategy, including leading the research, development, implementation and evaluation of effective systems and controls to mitigate the risk of fraud.
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