Huatai Insurance Chooses FICO Insurance Fraud Solution to Fight Mounting Auto Insurance Fraud and Streamline Claims Process
Fair Isaac Corporation
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Press release date: July 5, 2012
Beijing-based insurer is first in China to deploy analytics system to fight fraud
BEIJING - FICO (NYSE: FICO), the leading provider of analytics and decision management technology, today announced that Huatai Property Insurance of China has selected FICO's insurance fraud protection solution to reduce losses from auto insurance claims fraud, while accelerating claims processing and improving customer service. The choice of FICO represents the first deployment of anti-fraud analytics in China's insurance industry.
In 2011, China has become the world's largest automobile market. In that same year, the auto insurance market experienced growth reported at 16.35%. Along with such growth, however, China's rate of claims fraud has rapidly risen accordingly. Not only does fraud affect profitability, but it has also led to rigid and cumbersome processing practices that delay payments to legitimate customers.
FICO's predictive analytic models help uncover fraud early in the process, analyzing claims as they are submitted and identifying potential fraud before payments are issued. At the same time, a link analysis tool uncovers patterns between claims indicating that the fraud may be the work of an organized criminal ring. By pinpointing fraud more precisely and minimizing "false positives" (legitimate claims singled out for fraud review), FICO's solution enables Huatai Insurance to offer greater flexibility in processing and faster settlement of the vast majority of claims that don't require reviews.
"Huatai has a clear and specific goal, which is to reduce costs associated with fraudulent claims while delivering a superior experience to our customers," said Liao Yinghui, Vice President, Huatai Insurance, when talking about the cooperation between two parties, "FICO has demonstrated exceptional expertise in risk management and analytic modeling, and we are confident their fraud protection solution will help us achieve our goal."
"Fraud is both costly and disruptive, and will likely escalate as China's insurance industry grows," said John Chen, FICO's managing director for China. "FICO's analytic-powered solution is unique in its ability to speed up the overall claims process and increase customer satisfaction while reducing fraud losses. As a premier company in China's insurance industry, Huatai Insurance is leading the way as the first insurer to use advanced analytics to combat fraud."
Established in 1996, Huatai Insurance is a nationwide comprehensive insurance company in China. It is also a strategic partner of U.S.-based ACE Insurance Group. With 147 offices across China, Huatai Insurance's businesses include property loss insurance, liability insurance, credit and guarantee insurance, accident insurance and short-term health insurance. In the Asia Insurance Industry Competitiveness Ranking in 2009 and 2010, Huatai Insurance has been listed as the No. 6 in Asia's non-life insurance category and No. 4 in China's non-life insurance category for the two consecutive years.
FICO (NYSE: FICO) delivers superior predictive analytics solutions that drive smarter decisions. The company's groundbreaking use of mathematics to predict consumer behavior has transformed entire industries and revolutionized the way risk is managed and products are marketed. FICO's innovative solutions include the FICO® Score -- the standard measure of consumer credit risk in the United States -- along with industry-leading solutions for managing credit accounts, identifying and minimizing the impact of fraud, and customizing consumer offers with pinpoint accuracy. Most of the world's top banks, as well as leading insurers, retailers, pharmaceutical companies and government agencies, rely on FICO solutions to accelerate growth, control risk, boost profits and meet regulatory and competitive demands. FICO also helps millions of individuals manage their personal credit health through www.myFICO.com. Learn more at www.fico.com. FICO: Make every decision count(TM).
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