New counter-fraud machine-learning model recognised at Insurance Fraud Awards ensuring distinctly different distribution for insurers
A cutting-edge counter-fraud model launched by BGL in 2018 has received industry recognition at the Insurance Fraud Awards, securing the award for Combatting Fraud: Broker Innovation of the Year at the ceremony held at The Brewery in London on 4 October.
The model was developed by the Fraud and Data teams in BGL’s Insurance, Distribution and Outsourcing Division in response to rising levels of so-called ‘ghost broking’, in which criminals misuse genuine but stolen name and address details to buy policies which they then sell on to unsuspecting third parties.
BGL’s new and sophisticated model uses machine learning to block this attempted fraud at the point of quotation, while validating the 99% of customer enquiries which are genuine. At its heart is an algorithm which processes over 100 fields of customer and behaviour data into 750 model features which help isolate fraudsters based on their suspicious characteristics, picking holes in their imperfect attempts to impersonate their victim.
The introduction of the model has led to a reduction of more than 60% in the volume of fraudulent policies taken out, as well as reducing the volume of post-sale checks and balances needed to ensure that customers are genuine.
Mark Townsend, Managing Director, Motor and Home, said: “It’s important to all of us at BGL that we keep one step ahead of fraudsters to protect the millions of genuine customers who rely on us. Our passionate and determined Fraud and Data teams play a vital role in preventing fraudulent activity through their cutting-edge techniques. This award is a testament to their innovative and creative approach.”
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