Hong Kong: Federation of Insurers launches anti-fraud AI database
Source: Asia Insurance Review | Jan 2019
Hong Kong Risk Management
The Hong Kong Federation of Insurers (HKFI) has launched the Insurance Fraud Prevention Claims Database (IFPCD). Featuring state-of-the-art AI technology provided by Shift Technology, a French company, the IFPCD will be able to help detect different types of insurance fraud, particularly those involving multiple claims and syndicates.
“By nature, fraud is not easy to detect. In respect of indemnity insurance, experience in other markets overseas shows that for every $100 paid out in claims, about $10 to $15 would involve certain elements of fraud,” said HKFI provisional executive committee on IFPCD chairman Harry Wong.
“Hong Kong is lagging far behind many other insurance markets in terms of fraud detection and prevention. We need to move ahead quickly to catch up. Hence this IFPCD to protect the interest of honest policyholders,” he said.
The IFPCD is being developed in phases. Phase 1 will cover motor, medical and personal accident insurance. Since 1 December 2018, insurers have been able to upload the required data onto the IFPCD. As part of Phase 2 and 3, HKFI will continue to grow its IFPCD to include life and travel insurance. A