Admiral launches new fraud detection system

UK motor insurer Admiral has uncovered more than £250,000 worth in suspected fraud since launching its new detection system this month.

The new system, which is based on FICO analytics, business rules and link analysis technology, has helped the insurer’s fraud team to detect suspicious claims and prioritise cases following its launch.

“We chose a groundbreaking solution to get groundbreaking results,” said Admiral’s fraud operations manager for UK operations Susan Evans.

“FICO’s development of predictive models for our business, and our implementation of their combined solution, has been a tremendous success. In the first nine days since the system went live, we have found more than £250,000 in suspected fraud.”

The FICO motor fraud solution integrates three technologies to offer multi-layered protection.

Predictive analytics score each motor insurance claim submitted to Admiral’s claims centres to identify out-of-pattern or high-risk claims prior to payment.

The FICO Blaze Advisor business rules management system enables Admiral’s fraud investigators to set rules for known fraud factors, and to address fraud patterns quickly with new rules without the need for their IT department.

And an advanced link analysis tool then looks for similarities between suspicious and fraudulent claims in order to find and respond quickly to otherwise unidentified instances of fraud.

“Motor insurance is the top insurance fraud category in the UK,” said Mike Gordon, vice-president and managing director for FICO in Europe, the Middle East and Africa.

“Admiral’s approach to this problem is more advanced than the current standard practice in the insurance industry — not just in the UK, but in the world.”