The Association of Insurers in the Netherlands recently noted that COVID had not really impacted the number of insurance fraud attempts in 2020. About 30% of the 13.000 detected fraud cases were related to car claims, the other mostly travel insurance and house insurance policies. This is just the tip of the iceberg, though, across the world, estimates show that only about 15% of fraudulent claims are detected.
Big savings when uncovering fraud
In the Netherlands, the detected fraud cases resulted in a saving on 88 mio euro on claims costs in 2020. This is good news, for the industry but also the insurers – the fraud numbers have a direct impact on the policy premiums. In 2019 the detected fraudulent claims doubled compared to 2018. This caused a saving of 96 mio euro.
In Belgium the total costs of insurance fraud is estimated to be more than 500 mio euros per year. Depending on the type of insurance, investigation is carried out on between 1% and 3% of the cases.
In the UK, the value of non-life fraud is estimated to be 1.5 billion euros, and the unidentified fraud is around 2,2 billion euros.
So the numbers may vary, but what is the same almost everywhere is that an average of 15% of the fraudulent claims are discovered. That means that 85% of the cases are not discovered. Yet!
Uncover financial crime in a better, faster way
At Legentic, our ambition is to decrease that number. Our mission is to provide our customers with the tools and know-how that empowers them uncover financial crime in a better, faster way. Customers report that our easy-to-use platforms where big data is structured in a user-friendly way leads to a notable increase in fraud detection.
Case studies show that our Mohawk platform is used in 35-40% of the investigations on suspicious claims. In 25% of these cases it was used for additional information. 16% of the cases could be directly rejected due to Mohawk usage. We strive to increase these numbers even more by our quest for superb data quality, combined with training our customers and sharing insights and best practices.
Are you curious on how Legentic could help you and your company to prevent and uncover fraud? We’d love to come to the rescue! Do not hesitate and reach out.