Insurance fraud finds new foe

Insurance firms are being offered innovative new technology to help prevent fraud.

11:49 28 September 2004

Insurance firms are being offered innovative new technology to help prevent fraud.

The software package uses XML to detect fraudulent claims by harnessing a series of external databases, according to reports on Microscope.

Developed by Advances, the application is aimed at motor insurance claims. Insurers are required to input the claims data using an XML internet feed, with the software then comparing the statistics with the feeds coming in from external databases.

The breakthrough technology then searches for inconsistencies between the two feeds, with staff following up any anomalies.

It is estimated by the Association of British Insurers that as many as five per cent of all claims are fraudulent.