Insurers are investing heavily in fraud prevention mechanisms, leveraging the newest technologies to perform deep analysis and to identify patterns of fraudulent behaviour. Unfortunately, they are limited to their internal data for these purposes. There is no industry standard for data sharing and there is no production-grade technology to facilitate industry-wide data sharing given the regulatory constraints of sharing sensitive, personal information.
Our solution provides a consortium of insurance companies a quick and automatic way to identify and eliminate the duplication of claims for the same loss event, while also complying with all regulations. Customers’ privacy is respected and no sensitive information is revealed to any competitors. To do so, the content of a claim is divided into public and private data. The ‘Public’ part of the verified claims is shared with all insurers in the network on a distributed ledger. The ‘Private’ part of claims is not shared, but is used to confirm fraudulent duplicate claims.
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.