Insurer clients of Hill Dickinson Fraud Unit [HDFU] have experienced record results from its fraud risk profiling model, launched at the beginning of the year. In the first quarter of 2013, the model has delivered a 122% increase in suspect claims identified to insurer clients, with all automated matches reviewed by HDFU analysts. The accuracy of the new model, which delivers a false positive ratio of less than 3%, has seen HDFU achieve these results with no increase in man power; realising greater added value for clients.
The new model allocates points to multiple risk factors, rather than relying on simplistic rule breaches as fraud indicators. These new rules interrogate new claims data through HDFU’s Netfoil Mass Data Analysis [MDA] service. The ability to flex the scoring matrix and directly reflect an individual insurer’s fraud tolerance level to control the nature and volume of output, has seen increased demand for Netfoil MDA across the industry. New subscribers to the service include Hastings Direct and Tradewise.
Paul Priestley, Head of Counter Fraud at Hastings Direct said: “As part of our commitment to protecting our honest customers, we are always keen to review any new market tools that will help improve our fraud detection rates. Having worked closely with Hill Dickinson for a number of years, we believe their values on fraud are closely aligned to ours – making them a trusted partner. With our sophisticated team of analysts, we are confident that any matches detected will only be investigated further, post our own rigorous checking.”
Wayne Martin, Claims Director at Tradewise said: “Tradewise will be looking to utilise Netfoil MDA to assist our newly formed Special Investigation Unit in identifying high risk claims and validating claims where no further concern is highlighted. Any matches will enable them to tailor their investigation process accordingly. The ability to configure the fraud screening solution to our specific fraud risk metrics is particularly appealing and ideally supports our overall counter fraud strategy.”
Peter Oakes, Head of Fraud at Hill Dickinson believes the flexibility of the new model combined with the accuracy of the results generated, has made the service highly attractive. “This powerful fraud screening tool supports efficient, proactive claims handling, in turn leading to reduced claims life cycles. Fighting fraud can be an expensive business for insurers but the ability to flex the Netfoil MDA scoring matrix to receive targeted results, aligned to their counter fraud strategy and available resource is invaluable. With fraudsters becoming increasingly sophisticated in their activity, intelligence is pivotal to fraud detection and prevention in today’s counter fraud environment.”
