FICO, a provider of analytics and decision management technology, announced that Huatai Property Insurance of China has selected FICO's insurance fraud protection solution to reduce losses from auto insurance claims fraud, while accelerating claims processing and improving customer service.
According to a release, the choice of FICO represents a deployment of anti-fraud analytics in China's insurance industry.
In 2011, China has become an automobile market. In that same year, the auto insurance market experienced growth reported at 16.35 percent. Along with such growth, however, China's rate of claims fraud has rapidly risen accordingly. Not only does fraud affect profitability, but it has also led to rigid and cumbersome processing practices that delay payments to legitimate customers.
FICO's predictive analytic models help uncover fraud early in the process, analyzing claims as they are submitted and identifying potential fraud before payments are issued. At the same time, a link analysis tool uncovers patterns between claims indicating that the fraud may be the work of an organized criminal ring. By pinpointing fraud more precisely and minimizing "false positives" (legitimate claims singled out for fraud review), FICO's solution enables Huatai Insurance to offer greater flexibility in processing and faster settlement of the vast majority of claims that don't require reviews.
"Huatai has a clear and specific goal, which is to reduce costs associated with fraudulent claims while delivering a superior experience to our customers," said Liao Yinghui, Vice President, Huatai Insurance, when talking about the cooperation between two parties, "FICO has demonstrated exceptional expertise in risk management and analytic modeling, and we are confident their fraud protection solution will help us achieve our goal."
"Fraud is both costly and disruptive, and will likely escalate as China's insurance industry grows," said John Chen, FICO's managing director for China. "FICO's analytic-powered solution is unique in its ability to speed up the overall claims process and increase customer satisfaction while reducing fraud losses. As a premier company in China's insurance industry, Huatai Insurance is leading the way as the first insurer to use advanced analytics to combat fraud."
Huatai Insurance is a an insurance company in China.
FICO delivers predictive analytics solutions that drive smarter decisions.
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