Experian launches a new fraud solution for the Life Insurance Sector

Experian launches a new fraud solution for the Life Insurance Sector

The offering will help life insurance companies to be a part of the CUG for detection of life insurance frauds.

  • May 2, 2016  
  • |  
  • UPDATED   11:15 IST

Experian India launches Hunter Fraud Management services, in order to help the life insurance sector in India. By being the part of the Hunter Closed User Group (CUG) , this offering will help the insurance companies to detect life insurance frauds.

Experian, has also signed on 15 life insurance companies in India for this repository. In India, Experian is the only credit information provider of application fraud detection services using National Hunter. We have over 43 banks sharing data in the CUG and using the Hunter services to identify potential fraudulent applications. Today, more than 50% of retail banking applications are screened through National Hunter on a monthly basis.

Talking about the relevance of this platform, Mr. Mohan Jayaraman, Country Manager, Experian India said, "Over the past 10 years, the Indian insurance industry has grown at a compounded annual growth rate of around 20%. However, with the exponential growth in the industry, there has also been an increase in frauds. With life insurance companies now being added to this framework, Experian will be able to pull out fraudulent applications or policy proposals quickly."

Commenting on this development, Mr. V. Manickam, Secretary, Life Insurance Council said, "We are pleased to be associated with Experian India to build a data repository and create a fraud monitoring framework for life insurance companies in India. According to sources, Insurers lose about 6% of their revenue annually due to fraud. With Insurance claim frauds on the rise, risk management in insurance is crucial. We believe that this framework would help tighten the system, thus helping insurers save money on account of false claims."

Experian India  has been appointed by the Life Insurance Council today to create a data repository and fraud monitoring framework for the Life Insurance industry in India. This repository could help insurance companies in reducing premium rates as insurers need not buffer for such losses, improving operational efficiency & bottom-line of insurers and in keeping bad elements out of the system.

"Under Section 45 of the Insurance Laws (Amendment) Act, life insurance companies cannot repudiate a death claim on the ground of mis-statement of facts or deliberate suppression of certain facts after three years from when it was effected. This means the insurer has a three-year window to reject claims on grounds of any mis-statement or fraud. The repository would certainly help to control fraud risk that may emerge due to unauthorized use of this section." says Mr. Mohan Jayaraman, Country Manager, Experian India.