Insurance fraud is “an intentional act, carried out by a legal or natural person, in order to unduly obtain a profit from the insurance contract”, according to the definition of the Agency for Combating Insurance Fraud (ALFA).
This sum has an impact both on customers, but also on insurers who must increase their prices to make up for the lost business volume.
Insurance scams include:
According to the report of the Commission of Inquiry on the fight against social benefits fraud published in 2020, in 2019, Property and liability insurers would have suffered 368 million euros in fraud. The amount relating to personal insurance fraud reported in the same report was 50 million euros. Maxence Bizien, director of the agency fighting insurance fraud, believes that this figure is actually higher, because a low rate of personal insurers responded to the survey.
The cost of fraud has a direct impact on the cash flow of insurance companies, which, in order to limit their debt, then increase the price of their products and, in fact, the amount of their customers' contributions. To get an idea, according to the French Insurance Federation (FFA or France Assurers), the multi-risk home contract has increased by 34% in 10 years, fraud being one of the main causes of these increases.
In addition, fraud also has consequences on the reputation of an insurance company and, in fact, its ability to attract new policyholders and maintain its business.
The increase in insurance fraud figures from year to year can be explained by a double factor. The first, which is rather negative, indicates that the number of fraudsters is increasing. The second, more positive, proves that the number of fraud detected by insurance companies is increasing, in particular thanks to the tools that are being put in place.
As an insurer, different types of tools can be implemented in your company to fight against document fraud. These tools adapt to each stage of your policyholders' journey, from their subscription, to the declaration of a claim, including the payment of their premiums and allow you to detect false documents digitally and thus avoid fraud.
Let's imagine here a registration case, with the use ofa strong authentication solution using an official identity such as ShareID combined with SaaS software for the detection of false documents powered by artificial intelligence, such as Finovox.
Among the first documents to be analyzed when taking out insurance, there is the identity card. ShareID is a French authentication-as-a-service (AaaS) solution, which allows you to quickly verify the authenticity of identity documents and the identity of users.
⚙️ How does it work?
The user captures a video of their identity document. He is then asked to take a screenshot of his face - smiling - with - his smartphone. This information will make it possible, first of all, to ensure the authenticity of the identity document. This will also make it possible to deliver a valid and reusable digital identity, without ever storing any personal or biometric data.
✨ What makes ShareID unique:
ShareID has developed algorithms for the authenticity of identity documents - in partnership with the French National Gendarmerie - and makes it possible to reproduce the equivalent of an identity check carried out by the authorities in real time and without storing neither personal data nor the biometric data of users. This patented technology is able to analyze standardized documents from more than 120 countries and passports from around the world and its accuracy rate is 99.9%..
Second step when taking out insurance: the submission of documents such as proof of address, tax notice, RIB, etc. During this stage, the use of software to detect false documents such as Finovox is a valuable asset. Our SaaS solution makes it possible to meticulously examine all documents and identify possible alterations to the document or documents that were created from scratch. These analyses are carried out using our statistical tools but also thanks to AI. It also works when making claims for compensation. The invoices sent to your insurance are then analyzed by the solution, in order to detect any falsification.
⚙️ How does it work?
After dragging and dropping the documents into our solution or using The Finovox API, these are analyzed one by one, in order to determine if they are original files or if they have been falsified and in what way. This analysis is possible thanks to our coherence analysis algorithms, but also to visual, computer and statistical analysis as well as to our comparison tools that were fed from external databases. These multiple analyses make it possible not to miss any area of the document that would have been falsified, created from scratch or modified in order to identify fraud... And thus, to avoid it!
✨ What makes Finovox unique: we analyze 100% of your documents, of all types, in all languages and in any format.
Falsifications are detected using advanced machine learning algorithms owned by Finovox, a French company.
An example to see more clearly:
Ms. F. takes out insurance with Assurance A. When she subscribes, she provides documents, including: her identity card, a registration certificate, her driver's license and an insurance information statement. After submitting his file, his identity card is analyzed by ShareID, which carries out a complete verification of the authenticity of the document. On the integrated solution, Madame F. must also take a video to validate her identity and thus avoid any usurpation.
Meanwhile, Finovox combs through the other documents to detect any fraudulent manipulation.
The analysis is over! ShareID detects an anomaly with Madame F.'s identity document It seems to have been usurped. ShareID shows the return of AI to Insurance A. The Finovox solution, for its part, found multiple changes in the structure of Ms. F's insurance information statement. It is indicated that the bonus/malus percentage data has been modified on Photoshop. Our tool also allows you to go back in the modification history of the document and allows you to know how and how many times the document was modified.
By combining these two tools, you allow your teams to focus on managing fraud, rather than detecting it. In this case, it seems that Madame F. wanted to embezzle money to Assurance A.
Use a combination of tools like ShareID and Finovox represents a considerable saving of time and above all, it makes it possible to fight sustainably against document fraud and identity theft and to drastically reduce the financial damages associated with them.
To find out more about these solutions and how to implement them in your business, contact our experts and ask for a demonstration!
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