In France, the Agency for Combating Insurance Fraud (ALFA) believes that insurance fraud represents a loss of 2 billion euros every year. According to a study conducted by The Lynx in 2022, 20% of policyholders admitted to having evaded insurance, compared to 11% in 2021, what generates an impact on 7% of business turnover. In this context, the fight against fraud has become a priority for many insurance companies.
Luko is a French start-up specialized in insurance, founded in February 2018 and having raised 50 million euros in December 2020. It offers a fully digital insurance solution, which positions it as a neo-insurance. Insurance fraud can take various forms: false claims declarations, modification of invoices or estimates, and simulation of an accident...
Digital technology often means fraud, and Luko is no exception. This is why, as part of the fight against fraud, Finovox has come into contact with the renowned neo-insurer. Mainly used to verify invoices and quotes provided by its customers, the Finovox solution started its analysis in mid-2023.
The Finovox software was deployed in 2 phases: a pilot phase on a restricted perimeter, then an extension to the global documentary perimeter.
Starting with Finovox Investigation (Finovox's SaaS platform dedicated to the manual investigation of documents), Luko's anti-fraud teams were able to become familiar with innovative technology and its daily use in the study of fraud.
Following positive feedback on the detection rates and the explainability of fraud, the Luko and Finovox teams worked together to deploy Finovox Detection, the API solution for the automatic and real-time analysis of incoming documents. At the end of 2022, the integration could be put into production for complete processing of the flow: from analysis upon receipt via API to decision-making after investigation thanks to the platform.
“Since using the API, we've doubled our fraud economy. In the insurance world, you save the amount you would have had to pay if you could not prove the fraud. And this economy, in our country, has doubled compared to the previous year. In fact, today, we are wondering if we are not going to do a retroactive check on old files.”
Marie-Colombe Pineau, Fraud and Complaints Manager at Luko, expressed very positive feedback on the use of Finovox, stressing that it is the solution that Luko was waiting for in order to effectively combat document fraud. Although no figures on Finovox's successes are yet available due to the recent collaboration, they will be added as soon as they are available. It is important to emphasize that the fight against document fraud is not only a concern for Luko, but is also a legal obligation in France to combat money laundering and the financing of terrorism.
“Finovox is the solution that Luko was waiting for in order to fight effectively against document fraud. Its team and its tool are the great qualities of Finovox.” Marie-Colombe Pineau, Fraud and Claims Manager at Luko
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