The Hong Kong Federation of Insurers (HKFI) has announced the launch of a new anti-fraud database driven by artificial intelligence (AI). The Insurance Fraud Prevention Claims Database (IFPCD), which launched on 1 December, utilises cutting-edge AI technology to detect different types of insurance fraud, with a particular focus on those involving multiple claims submissions and syndicates. The AI technology that underpins the new platform has been developed by Shift Technology, a Paris-based company.
In order to ensure that the rollout is compliant with the public interest, an independent steering committee has been set up; the development will be phased, with phase 1 covering motor, medical and personal accident insurance, while phases 2 and 3 will expand the platform to include life and travel insurance.
The database is part of the HKFI’s Vision 2028 initiative, and a key plank of its current five-year plan.
“By nature, fraud is not easy to detect,” commented Harry Wong, Chairman of the HKFI Provisional Executive Committee on IFPCD. “In respect of indemnity insurance, experience in other markets overseas shows that for every $100 paid out in claims, about $10 to $15 would involve certain elements of fraud. Hong Kong is lagging far behind many other insurance markets in terms of fraud detection and prevention. We need to move ahead quickly to catch up. Hence this IFPCD to protect the interest of honest policyholders.”