The Kong Kong Federation of Insurers has launched the first phase of a fraud prevention database which will ultimately cover life products as well as a full spectrum of general insurance claims.
The Insurance Fraud Prevention Claims Database (IFPCD) is aimed at helping insurers to detect different types of insurance fraud, particularly those involving multiple claims and syndicates.
Using artificial intelligence provided by Paris-headquartered Shift Technology, the database is compliant with the European Union’s General Data Protection regulations.
The first phase of development, which is now live, covers motor, health and personal accident insurance, with phases two and three, including life and travel insurance, coming on stream at a later stage.
Lagging far behind
Harry Wong, chairman of the HKFI provisional executive committee on IFPCD said: “By nature, fraud is not easy to detect. In respect of indemnity insurance, experience in other markets overseas shows that for every HK$100 paid out in claims, about HK$10 to HK$15 would involve certain elements of fraud.
“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 interests of honest policyholders.”
Similar claims databases have been operating for years in the UK, Canada, the US, France, Australia, Singapore, Korea and China.