Hyundai Marine & Fire Insurance Taps SAS for Fraud Detection

Seoul-based Hyundai Marine & Fire Insurance is set to deploy a new fraud detection system that has been built with software from Cary, N.C.-based SAS.

The new fraud detection system combines business rules based on the experience and knowledge of its investigators with model rules generated from data extracted from various IT systems using SAS advanced statistical techniques, the companies say in a statement. The models are applied to insurance claims, delivering results to claims investigators in real time.

The project has been carried out in three areas: a fraud pre-detection system to help investigators judge the possibility of fraudulent activities using statistics-based model rules and business rules; a fraud post-detection system to detect afterward the characteristics of certain groups not detected with the prejudgment model; and a risk mart to generate data for prejudgment and post-judgment models.

“With SAS providing the foundation for advanced insurance fraud management, we can maintain consistent and transparent criteria for investigation, automate the scoring system, and respond swiftly and flexibly to investigations and operations of the organization,” Cheol-woo Lee, the Hyundai M&F Claim Investigation Department team leader who oversaw the project, says in a statement. “In particular, this will improve the efficiency of investigation personnel who collect and analyze evidence data for suspected insurance fraud, preventing payment of unjustified claims, while protecting honest policyholders from insurance fraud.”

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio