Allianz has announced that it has developed a machine learning tool called ‘Incognito’ that is set to tackle growing fraud claims.
Experts across the Allianz UK business have collaborated in developing and building the machine-learning tool.
From what we understand, Incognito identifies potentially fraudulent claims, which are then referred to a fraud expert for thorough review and investigation.
Allianz highlighted that since its development, the claims identified have saved £1.7 million to date with a further £3.4 million held in claim reserves pending conclusion of the investigations.
In an industry experiencing changing volumes, values and types of fraud being perpetrated by sophisticated fraudsters, tools like Incognito are becoming a very a crucial part of Allianz’s fraud prevention strategy.
“Our internal drive at Allianz has always been to put our customers front and centre. The development of Incognito has ensured that we enhance the market-leading service that we provide to our customers. We have been able to settle claims quicker and identify fraud at the earliest opportunity,” commented James Burge, head of counter-fraud at Allianz Commercial.
Moreover, as a leading firm across commercial insurance, Allianz noted that it recognises the marked increase in fraudulent cases across all areas of the business.
At the same time, application fraud savings have increased by 150% compared to Year-to-Date expectations, inflamed by the economic downturn and a fragile economy, as well as the cost-of-living crisis.
Allianz also noted that it’s fraud team are seeing high value cases in motor and casualty claims. A contrived accident claim that was identified by Incognito, managed to save £21,000 and another case involved a stolen vehicle is being investigated after being flagged by Incognito too.
Lastly, it is important to highlight how the growth in the use of artificial intelligence, robotics, animation, and the sophistication behind these technologies has meant that impact from an ethical, legal, and regulatory standpoint had to be considered.
Allianz stated that it’s Risk and Regulatory teams formed an important part of the project team to ensure compliance at every step.
Alex Sorrie, head of claims data at Allianz Commercial, said: “The success of Incognito is shown through its cost-saving approach, consistent fraud detection rate over time, automation capabilities, and regulatory compliance. Our partnership-driven approach and use of technology has set a new blueprint for combatting fraud and protecting our genuine customers and their premiums.”
