BGL Group has launched an AI-powered counter fraud pre-sale technology solution, which will be capable of identifying criminal activity.
By leveraging machine learning and AI algorithms, the solution will be able to prevent fraudulent vehicle policies being claimed. The company claims the average cost of a fraudulent motor claim is in excess of £12,000, which raises the prices of policies for other customers.
The technology was the result of years of collaboration efforts between BGL’s data scientists and the Group’s dedicated fraud investigation team. It builds upon the company’s existing counter fraud capability which includes card verification, blocking of discrete information related to known fraud and other areas.
BGL Group CEO for insurance Peter Thompson said, “The counter fraud capability we have developed across the Group has already demonstrably reduced our insurers’ loss ratios. With over 10 million customers, the insight we hold allows us to really deliver comprehensive and market-leading insight for our partners. As an industry, we’ve certainly come a long way in how we detect, capture and manage fraud, but so too have the criminals which is why it’s vital to continue investing in counter fraud capability.
“The use of artificial intelligence has the potential to propel the insurance industry into a truly digital arena and its application in areas such as counter-fraud, demonstrates its ability to have a significant and positive impact on both customers and the market as a whole.”
The RegTech claims to have saved companies more than £1.5m on marketing costs by identifying fake policies.
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