Allianz unveils new AI tool to tackle fraud

Allianz UK has developed a new machine-learning tool in a bid to tackle fraudulent claims with artificial intelligence (AI), a statement released today (8 December 2023) said.

Called Incognito, the tool identifies potentially fraudulent claims, which are then referred to an expert for thorough review and investigation.

The insurer said it was making the move after seeing a rise in scams – earlier this year (12 September 2023), it highlighted that when it came to application fraud, there had been higher prevalence of phoenix companies as well as an increased level of false no claims discounts and confirmed claims experiences (CCEs).

The firm also found that ghost broking was showing signs of growth.

However, since the development of Incognito, claims identified have saved £1.7m to date, with a further £3.4m being held in claim reserves pending the conclusion of investigations.

James Burge, head of counter-fraud at Allianz Commercial, said: “Our internal drive at Allianz has always been to put our customers front and centre.

”The development of Incognito has ensured that we enhance the market-leading service that we provide to our customers. We have been able to settle claims quicker and identify fraud at the earliest opportunity.”

Blueprint

Allianz also said that as fraudsters become more sophisticated, tools such as Incognito “are becoming a crucial part” of its fraud prevention strategy.

The insurer highlighted a contrived accident claim identified by the tool saved £21K, while another case involving a stolen vehicle is being investigated after being flagged.

Alex Sorrie, head of claims data at Allianz Commercial, said: “The success of Incognito is shown through its cost-saving approach, consistent fraud detection rate over time, automation capabilities and regulatory compliance.

”Our partnership-driven approach and use of technology has set a new blueprint for combatting fraud and protecting our genuine customers and their premiums.”