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New alert tool enhances ICBC’s
fight against insurance fraud

ICBC is boosting its efforts to fight fraud
following the first results from a new hightech
tool, which will help identify and target
fraudulent claims early in the claims process.
Fraud analytics technology uses data,
algorithms and statistical methods to help
spot cases where the facts don’t seem to add
up to an honest claim.
“This technology is helping ICBC
investigators connect the dots earlier, faster
and at a level previously not available, in
cases where they think a claim may be false
or exaggerated,” said Todd Stone, Minister of
Transportation and Infrastructure. “Fighting
fraud is an important part of ICBC’s efforts
to keep rates as low as possible.”
ICBC expects fraud detection and
enforcement activities to reduce ICBC’s
basic insurance claims costs by $21 million
for policies written over the next year.
And ICBC estimates all of these activities,
including use of the analytics tool, will save
up to $44 million a year by 2019.
ICBC has signed a five-year agreement
with BAE Systems to use the fraud
analytics software and case management
solution. (See video of what the tool
can do: https://www.youtube.com/
watch?v=ZTzT4NMggzs)
The first run of data through the
analytics tool reviewed all claims
information for the last three years and
generated 3,300 possible fraud alerts on
open claims. ICBC has reviewed the first
102 alerts, and started 48 new suspected
fraud investigations. ICBC anticipates
more investigations to begin in the coming
months as it continues to review the alerts.
This is in addition to the more than 5,000
claims and driver licensing investigations in
2016 to date, ICBC has already completed.
“Early results from the new tool are
exceeding our expectations, but it doesn’t
replace the diligent work already done by
our trained investigators and front-line
claims adjusters,” said Mark Blucher, ICBC
CEO and president. “This tool can sift
through volumes of information, such as
claims history, addresses, driver licensing
and vehicle registration data quickly, and
flag possible links within the data that can
alert us to possible indications of fraud
faster and on an ongoing basis.”
ICBC will undertake additional data
runs with the tool over the coming
months, as the new analytics tool is
fully implemented. Once fully in place,
ICBC estimates the tool could generate
an estimated 28,000 alerts a year, in
addition to the investigations generated by
traditional means.
Most claims are honest, but insurance
industry studies estimate that fraudulent
and exaggerated claims make up about
10 to 20 per cent of all claims costs.
Applying those estimates means that fraud
and exaggeration costs B.C. hundreds of
millions of dollars each year or every ICBC
policyholder more than $100 per year.
ICBC will continue its public education
efforts with another fraud prevention
awareness campaign early in 2017. Earlier
this year, an awareness campaign sparked
a 70-per-cent increase to ICBC’s fraud tips
line.
British Columbians can further protect
their wallets by reporting suspicious
activities related to insurance fraud to
ICBC’s toll-free tips line at 1-800-661-
6844. Tip information is confidential and
callers can remain anonymous. For more
information, visit icbc.com/fraud.