If ignorance is bliss to some, it cannot be to an industry that banks on risk. Double-dipping fraud — or multiple-payouts for the same incident — has cost insurers billions of dollars, and we do not even know how much. That is about to change.
Since winning the global insurtech challenge by R3 and B3i in 2020, a dedicated team from IntellectEU has worked relentlessly to build the first-ever platform enabling the detection and prevention of double-dipping fraud — all in accordance with European General Data Protection Regulation (GDPR) laws.
We have also collaborated with numerous business and technology partners — as well as insurers and regulators globally — to ensure that our solution adheres to various business needs and legal frameworks across the world.
Although we understood that this phenomenon constituted a serious chink in the industry’s armor, we did not realize to what extent.
As it turned out, none of the insurers we spoke to was able to give us an estimate of their losses — a blind spot that spiced up the challenge and, actually, opened a door.
The opportunity that arose corresponded to what we envisioned first for our product: 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 per insurer.
By creating a flexible back-testing program, we would be able to easily test claims data without the need for complex integrations.
This in itself would be enough to quantify — nearly to the dime — how much double-dipping of a specific insurance type cost the insurers.
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, with nodes and Intel SGX’s enclave deployed on multiple cloud providers.