Machine learning technology helps combat rising incidents of fraud in UK

Ageas and Claims Consortium Group (CCG) launched an award-winning¹ joint initiative to detect and mitigate insurance fraud linked to Escape of Water claims (EOW). This initiative was in response to a significant increase in Escape of Water claims year on year across the whole industry. The challenge was to quickly identify genuine claims, especially for vulnerable customers, while also flagging any potentially fraudulent ones. This fraud detection initiative is optimising cost control, enhancing customer service efficiency, all while leveraging digital and data expertise.

Integrating CCG’s specialised knowledge and innovative claims platform Synergy Cloud, enabled Ageas and CCG to pool intelligence to tackle the challenge of low value, high volume EOW claims. The digital technology works in tandem with Ageas’s experienced claims handlers and bespoke EOW machine learning models to analyse claims quickly and identify where and when skilled and experienced experts are needed for further investigations.

The success of this early fraud detection strategy has resulted in the identification of a 108% rise of contrived claims, a 207% increase in the number of exaggerated claims, and a 200% upturn in misrepresented claims over the past two years. Despite the significant growth in fraud detected, the number of associated complaints fell by 4% which reflects a joint commitment to combat fraud and improve the overall claims process while ensuring a positive customer experience.

*Insurance Times Awards 2024 – Excellence in Fraud Mitigation

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