Kyobo Life Insurance Taps SAS for Fraud Management System

Major Korean carrier Kyobo Life Insurance (Seoul) has selected SAS (Cary, N.C.) to support and enhance its existing risk and fraud management system. The new system from SAS will raise the level of the company's risk management efforts by applying SAS analytics to assess risk relating to new business and accident claims, identifing those that require further examination, according to a SAS source.

Kyobo life will team with SAS Korea to develop a system providing varied modelng capability to execute analytics-based fraud detection. With a planned rollout of the system in March 2010, Kyobo Life anticipates reduction in payouts on fraudulent claims will drive lower premium rates.

"Starting early next year with this new system, we will protect our policyholders more effectively by improving business performance and preventing unnecessary and unfair insurance claims payouts," comments Kim Kyung-Lyung, general manager, Kyobo Life. "The new system is expected to increase customer satisfaction and the competitiveness of the company's marketing practice, which will help retain our best customers."

"Combining SAS' technologies and Kyobo Life Insurance's existing management systems will provide a range of insurance fraud models and perform the analysis as part of the operational process," asserts Choi Byung-Jung, project manager on SAS Korea's Crime and Compliance team. "It could change the way insurance fraud is identified, from post-accident detection to payment prevention."

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio