Ground-breaking technology developed by Hexaware Technologies, a leading global provider of IT, BPO and consulting services, will save the insurance industry significant savings in the range of 3-7% of the current Gross Premium Revenues.
Its new fraud analytics solution is the first of its kind and its unique features provides insurers unmatched fraud management capabilities and visibility.
This enables earlier detection of fraud in the process claims lifecycle, reducing the number of false claims payments to about 10 per cent.
According to the UK's Insurance Fraud Bureau, (IFB), undetected insurance fraud costs the industry an estimated £2.1billion a year, adding an average £50 to the annual costs that individual policyholders face, on average, each year.
"With market condition remaining very competitive in many insurance sectors, the cost of fraud is coming under intense scrutiny - this view is reflected in Ovum's research that indicates fraud technology will be a key investment priority over the next 24 months, particularly among European insurers.
"Insurers are increasingly looking for comprehensive platforms, that detect potential fraud at every phase of the product lifecycle, even at the quotation stage and not just after a claim has been lodged. Apart from the direct impact on loss costs, an effective fraud strategy will give insurers the ability to reduce premiums and drive customer service - a real competitive differentiator in a very tough market." said Charles Juniper, senior insurance analyst at Ovum.
"Insurance fraud is a significant problem and while many insurers prefer to ignore these issues in order to keep their customers base intact, fraudsters effect on ever-increasing premiums is something we can no longer ignore." said Ramanan Seshadri, Executive Vice President & Global Head Insurance and Healthcare Business Unit, Hexaware Technologies Limited.
Developed by Hexaware's expert team of claims adjudicators, underwriters, statisticians, data scientists and analytics professionals, the new fraud analytics solution, iFraudEngine provides actionable market intelligence and reporting, forecasting, early fraud identification and pattern detection, allowing insurers to reduce underwriting and claims leaks by over 45%.
This engine is technology and business-systems agnostic and easily integrated with any pre-existing policy administration system (PAS), claims management system or external database, while also being capable of processing claims already in place.
Ramanan Seshadri added "Many of today's market solutions only offer a fragmented method to fraud detection, while we have developed a fraud analytics solution which takes a 360-degree approach. It draws upon an extensive library of more than 100
pre-defined and configurable rules that analyses unstructured data from any source.
"Hexaware's predictive model also includes up to 50-base scenarios which can be easily customized to address ever-changing fraudulent techniques. Having the right technology, techniques and protocols in place to identify fraud early in the insurance claims process lifecycle is paramount.
"Our solution is equipping insurers with the right tools to better detect and ultimately help prevent fraud. At Hexaware we are proud to do our part to help better support our customers and better protect their customers from opportunistic and professional fraud."