Insurer MSIG Singapore has partnered with technology solutions provider Fermion to deploy artificial intelligence in fighting motor insurance fraud.
TrueSight Fraud Intelligence will automate at least 50% of screening checks, freeing up claims staff to focus on higher-value tasks such as interviewing claimants and assessing complex claims.
The solution leverages AI technology to analyze vast amounts of data and detect potential fraudulent activities in real time.
It uses data gathered in Singapore and processed by insurers using Fermion’s eClaims system, making it more accurate in detecting and preventing fraud. As it is scalable and customizable, the tool is ideal for insurers of all sizes, Fermion says.
The General Insurance Association of Singapore reported in 2017 that around 20% of all motor claims in the city-state are fraudulent. With the high volume of claims processed daily, it can be a significant challenge for insurers to detect fraudulent activities.
The solution addresses the issue of insufficient structured data to train the AI model effectively, which has been a root cause of inaccurate fraud detection in existing AI solutions in the region.
In TrueSight, aggregated results of automated checks performed on hundreds of data points are presented as a visual network diagram, allowing insurers to identify scams as they occur quickly. MSIG Singapore estimates that the solution will save over S$100,000 (US$75,500) per year and potentially save more in the future.