How insurance broker, Only Young Drivers, is taking a novel approach to application fraud
Whilst lie detection technology has been around for some time, it's never been widely adopted within the insurance industry. In this article from Insurance Post, they examine the viability of this technology within the insurance industry through a real world example provided by insurance broker, Only Young Drivers, and explore its potential impact in detecting fraud across other industries referencing the opinions of subject matter experts.
Within this article Matt Stanton, Head of Business Intelligence at Synectics Solutions, discusses the increased interest among financial providers in the practical uses of lie detectors as a fraud prevention tool.
"As a company we work very closely with a huge array of insurance, banking and other financial services providers to deliver fraud detection and prevention solutions and we are seeing an increasing number of our clients starting to explore the opportunities voice recognition technology offers. Voice recognition technology does hold significant future potential for risk prevention, while also offering the possibility of further streamlining the customer journey, through quicker and less intrusive verification processes."
Voice detection and fraud: the numbers
- Voice detection technology isn't 100% accurate for detecting fraud and only 80% to 90% of false statements will be successfully detected.
- In 2014, insurers uncovered more than 212,000 dishonest insurance applications for car insurance, an increase of 18% on the previous year.
- The Association of British Insurers revealed that insurers uncovered 130,000 fraudulent claims in 2015, the equivalent of 2,500 a week.
- The ABI estimates that fraud adds on average an extra £50 to the annual insurance bill for UK policyholders.
- Collated statistics from insurers estimates that the size of detected insurance claims fraud was £1.32bn in 2014.
- Collated statistics from insurers estimates that the size of detected insurance claims fraud was £1.32bn in 2014.
- Insurers are currently investing approximately £200m each year to identify fraud.
To view the full report, download it below:
In depth - Using lie detectors to root out fraud
