MSIG Singapore partners Fermion to combat insurance fraud

Leading general insurer MSIG Singapore has partnered with insurance ecosystem builder Fermion to implement advanced artificial intelligence (AI) tools to combat motor insurance fraud. 

Fermion delivers end-to-end digital transformation solutions enabling banks, insurers and financial services providers to build differentiated data-based ecosystems.

MSIG is using Fermion's TrueSight fraud intelligence AI tool to accurately identify motor insurance scams as they occur, mitigating the opportunity for fraud. 

MSIG’s senior vice president Sam Tan said the company aims to automate at least 50 percent of screening checks and eventually reduce the risk of paying out fraudulent claims. 

"The sheer number of claims processed daily, coupled with their interconnectedness, makes it a huge challenge for insurers to detect fraudulent activities,” he added. 

The existing solutions in the region lacked accuracy in detecting fraud, generating high volumes of false alerts. The firm faced issues due to insufficient structured data to train the AI model effectively. 

TrueSight Fraud Intelligence taps data gathered in Singapore from millions of motor claims processed annually by insurers using Fermion's eClaims system.

The AI model helps to correct errors by checking every claim against decision rules. Aggregated results of automated checks performed on hundreds of data points are presented as a visual network diagram, allowing MSIG to identify scams, he explained. 

MSIG estimates the solution will save the company over S$100,000 per annum and with the potential to increase over the years.

Earlier in 2019, the partners had co-innovated a video interaction technology, TrueSight Interactive Video, to speed up motor claims survey. The technology allows for two-way, real-time video calls for motor surveyors to view the vehicle damage and complete a motor claims assessment within minutes.