Following a lengthy period of consultation and analysis, Blockclaim is ready to get started on an exciting new project. The pilot will see the team working closely with senior staff at one of Belgium’s leading bank-insurers. We will be looking at how Blockclaim’s insurtech solutions can help them to identify fraudulent claims with increased speed and accuracy, thereby reducing costs and increasing the speed with which genuine claims are settled.
Need Data!
Anyone who grew up in the 1980s will remember the film Short Circuit and the sentient robot called Number Five. He constantly craved data of any kind, and the more he absorbed, the better and more “human” his responses and decisions became. This proved to be strangely prophetic, and is a concept that will be familiar to those working in and around data analytics.
Blockclaim’s ML product might not have caterpillar wheels or a wiseguy attitude, but conceptually, it works in a similar way to Number Five. The more data we feed into it, the smarter it gets, meaning it will be able to identify more fraudulent claims in a shorter timeframe.
The potential stumbling block comes down to the personal nature of the data that goes onto the form. In an ideal world, the insurer would provide us with every piece of information that is available about the claimant, the vehicle and the incident, by simply sharing everything that is contained on the claim form.
Meeting data protection obligations
We all know that personal data and its protection has to be taken extremely seriously. For one thing, breaching GDPR regulations can have serious legal consequences. But regardless of that, every one of us is a potential insurance claimant. It’s one occasion on which we have no difficulty stepping into the end user’s shoes and the simple fact is that if we were involved in a vehicle accident, we would expect the insurer to treat our personal information with professionalism and respect.
That is not to say that data of a personal or sensitive matter is completely off-limits. It is simply the case that providing it means additional checks, due diligence and process implementation for the client. In other words, it is up to us to show that providing data of this nature adds value for the client and is worth the extra effort.
What are the benefits?
Blockclaim can bring plenty of benefit even by using only the non-sensitive information that is provided on a typical claim form. This alone will increase fraud detection by validating some of the basic information relating to drivers, vehicles and circumstances surrounding an accident.
Adding personal information to enrich the data will improve the effectiveness by an additional factor of around 50 percent. That sounds impressive, but what does it mean in financial terms?
Just the time saved by auto-adjudication through checkbox verification and number recognition will bring annual savings of around €75,000 per annum. However, with full disclosure of all available data, this can easily be doubled.