Fraudulent insurance claims are estimated to total around US$100 billion each year. To help their insurance clients protect themselves against fraudulent claims, digital and finance solutions specialist, MoData, has partnered with IntellectEU, a leading financial technology company with a strong focus on blockchain and DLT.
This impactful partnership will give MoData clients across Africa access to IntellectEU’s award-winning ClaimShare platform, which has been specifically developed to detect duplicate claims, also known as double-dipping, and to protect insurers from paying them out twice. Almost 10 per cent of insurance claims are estimated to be fraudulent, of which between 5 and 10 per cent are as a result of double-dipping fraud. Duplicate claims for the same loss events happen hundreds of times a day and are estimated to cost insurers around US$5 billion to US$10 billion annually, which ultimately results in higher premiums for customers.
IntellectEU’s innovative ClaimShare platform offers the first opportunity for insurers to collaborate with each other to enhance their fraud detection systems while preserving both business and client privacy.
“MoData is excited to announce this partnership with IntellectEU and to offer the leading-edge ClaimShare platform to its clients across the region, bolstering our fraud detection solutions offering,” says Clive Gungudoo, MoData’s Director of Financial Crimes and Risk Management. “ClaimShare utilises confidential computing, blockchain and artificial intelligence to assist in early detection of double-dipping fraud, resulting in industry-wide savings in overall insurance fraud loss and cost of operations. At the same time, it assists law enforcement authorities to profile and link syndicates during the criminal investigative process to deter fraud and money laundering.”
ClaimShare is easy to integrate and does not require any changes to the insurer’s front, middle or back-office systems. It integrates with claims handling systems and the insurers’ back office systems using simple real-time APIs.
IntellectEU’s ClaimShare platform separates the claims data, which consists of private and non-private data. The non-private data is shared on the permissioned blockchain, while the private data is locked in the confidential computing component. It uses fuzzy matching algorithms to identify suspicious claims, which are shared on the blockchain ledger. Once claims are suspected of being fraudulent, ClaimShare uses hardware security (ie, Intel SGX enclaves) to ensure robust data security, privacy and regulatory compliance to match the private data, confirming the fraud attempt before an insurer duplicates a pay-out for the same claim, effectively eradicating double-dipping fraud.
Both MoData and IntellectEU have proven track records as key drivers of innovation and are committed to seeking out and delivering agile solutions for their clients in this ever-changing digital landscape. Most importantly, this new partnership addresses the problem of ever-growing fraud threats and will translate into cost-savings for MoData’s clients in the insurance sector, as well as their customers.
“ClaimShare is all about collaboration, both between insurers as with our partners globally. With MoData onboard, we’re excited to expand our offering across the African region and support MoData’s clients with their fight against fraud”, says Chaim Finizola, director of ClaimShare at IntellectEU. “MoData’s is a true leader when it comes to financial and insurance services in Africa. We’re amazed by the interest and feedback from their clients so far and look forward to fighting fraud together!”
“As it turned out, none of the insurers we spoke to was able to give us an estimate of their losses due to double-dipping, although each insurer acknowledged its existence. A blind spot that spiced up the challenge and, actually, opened a door: instead of focusing on real-time double-dipping detection from the get-go, we would start with quantifying the amount it represented over the course of the previous year during a back-testing program, which allows us to easily test claims data of multiple insurers without the need for complex integrations and even identify potential fraudsters.
The return on investment in a single year is potentially so advantageous to insurers that the data in itself is enough. The data is the product. Over the course of last months, we have delivered the first platform that enables the back-testing of insurance claims using Conclave and Corda enterprise on blockchain, with nodes and Intel SGX’s enclave deployed on multiple cloud providers for confidential computing.”
For the past three decades, MoData has been offering innovative, intuitive, and intelligent digital business solutions for leading banks, financial services, and investment companies across Africa to assist them in addressing enterprise-wide fraud, cybercrime, and compliance requirements, including implementation, professional advisory services and support. The MoData team of specialists prides itself on its agility and entrepreneurial approach to finding smart solutions to clients’ needs, with an emphasis on cost optimisation, back-office transformation and customer satisfaction. Their diverse range of product offerings means they are able to provide businesses with everything they need to transform into an effective, digital organisation. For more information, please visit www.modata.com
IntellectEU is an international technology company focused on digital finance and emerging technologies. Since 2006, IntellectEU has been focused on financial messaging and integration, being a SWIFT service partner. Building on its rich experience in financial services and technology, IntellectEU founded its DLT and blockchain tribe in 2014.
Always pioneering to serve its clients best, Intellect EU became a founding member of Linux Foundation’s Hyperledger in 2016. Today, it works with all leading blockchain providers (R3 Corda, DAML, Hyperledger, VMWare, IBM) in the banking, insurance, capital markets and telco space. Apart from Blockchain and DLT, IntellectEU is also venturing into Artificial Intelligence by educating its clients and building products with them.