Working in partnership with Malaysian insurers, we are able to identify and prevent serious criminal activity that harms them, their customers and wider society.
Motor insurers are often regarded as acceptable targets for both opportunistic fraud and organised criminals funding crime by crashing cars or staging accidents for cash. According to the General Insurance Association of Malaysia (PIAM), the national trade association representing all insurers in the country, motor insurance claims paid out by insurers amounted to RM2.68 billion in 1H 20171.
Cracking down on fraud
The Malaysian insurance industry is currently working on a Fraud Intelligence System (FIS) initiative to combat insurance fraud, which is estimated to cause RM500 million in losses yearly, or 10% of motor portfolio incurred losses2. The ultimate goal is to ensure that any cost of fraud is not passed on to the consumer in the form of premiums.
Malaysian insurers understand that finding fraudsters targeting multiple organisations calls for a sophisticated, united approach. This requires analytics honed to detect subtle patterns revealing hidden criminal fingerprints across multiple data sources indicating criminal collusion, and tools which allow investigators to make fast, accurate, consistent decisions about suspicious cases without slowing down the settlement of genuine claims.
National-scale detection techniques
After evaluating many providers in the market, BAE Systems was selected by ISM as a strategic partner for this endeavour. In order to support Malaysia’s aggressive approach to disrupting and preventing organised motor claims, we’ve leveraged our decades of experience in providing national-scale detection and investigation technology and analytics to root out the most difficult-to-find criminals. Working in partnership with Malaysian insurers, we are able to identify and prevent serious criminal activity that harms them, their customers and wider society. The system provides insurers with the backend analytics, which helps to provide context to give a more accurate and penetrating detection, while providing fraud teams with actionable intelligence to prevent fraud quickly and confidently.
By spotting and denying more complex and sophisticated fraudulent behaviour, Malaysian insurers can deny organised criminals easy access to cash that may be used to commit further crimes. This will in turn reduce the burden on honest insurance customers who shoulder the cost of fraudulent claims.
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