Leading general insurer MSIG Singapore has partnered with Fermion to bring a new artificial intelligence tool to the market to help combat motor insurance fraud. Fraudulent claims have long been a problem for insurers and a combination of industry and in-house efforts have been used in the past to uncover these fraudulent activities. However, with the sheer number of claims processed every day, it can be a difficult task to detect fraudulent activities. MSIG Singapore believes that using AI technology, such as TrueSight Fraud Intelligence, will help to combat these fraudulent claims and reduce the cost of fraud.
According to Sam Tan, Senior Vice President and Head of Claims Services at MSIG Singapore, "With this new AI solution, we can rapidly uncover insurance fraud by cross-referencing data points. The tool offers, in one glance, the information needed to accelerate the claims management process." MSIG Singapore expects to automate at least 50% of the screening checks using TrueSight Fraud Intelligence, freeing up claims staff to focus on more important tasks such as interviewing claimants and assessing complex claims. The AI solution is expected to save MSIG Singapore over SGD 100,000 per year, with the potential for that number to increase in the future.
In 2017, the General Insurance Association of Singapore (GIA) reported that around 20% of all incurred motor claims are fraudulent. The general insurance sector paid out a total of SGD 1.24 billion in claims in 2021. This is why the TrueSight Fraud Intelligence tool is so important. The tool taps into data gathered in Singapore from millions of motor claims processed annually by insurers using Fermion Merimen's eClaims system, giving the AI tool greater accuracy in detecting and preventing fraud compared to other competitive solutions.
Agus Budiman, Head of Product Development at Fermion Merimen, said, "Existing AI fraud solutions in the region tend to lack accuracy in detecting fraud, generating high volumes of false alerts. A root cause was insufficient structured data to train the AI model effectively. To rectify this gap, we decided to take it upon ourselves to overcome this challenge." The TrueSight Fraud Intelligence solution is designed to augment Fermion Merimen's popular eClaims management platform. Once the data is processed by the eClaims platform, the AI tool assesses the potential for fraud and makes recommendations. Results from the automated checks are then presented in a visual network diagram, which helps insurers quickly identify scams as they occur.
The initiative to implement TrueSight Fraud Intelligence is a result of the strong partnership between MSIG Singapore and Fermion Merimen, who work together to innovate the digital claims process. This collaboration has already led to other successful solutions, such as the Interactive Video, which revolutionized the way motor claim surveys are conducted.
Sebastian Tan, Director of Singapore Operations at Fermion Merimen, said, "Insurers like MSIG with an admirable Kaizen spirit to innovate and serve customers better have inspired us to invest heavily in R&D. It’s our privilege to work closely with MSIG Insurance in Singapore to pioneer this solution and now we are looking ahead to roll this solution out to the rest of the industry."
To learn more about TrueSight Fraud Intelligence, visit www.fermion.io.
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