Insurance industry to enforce fraud intelligence system in August

KUALA LUMPUR: Insurance industry players expect to roll out the Fraud Intelligence Systems (FIS) by August next year to combat fraudulent claims.
Insurance Services Malaysia Bhd (ISM) Chairman Kong Shu Yin said the system was a collaborative effort by the industry.
It would be implemented in phases, starting with the motor insurance segment before being expanded to other segments.
Jointly developed by ISM and BAE Systems, the system would enable insurance companies and Takaful operators to detect and reduce fraudulent claims through its cutting edge technology and data science.
"By pooling together industry data, FIS takes a data-driven scientific approach to fraud detection," he told a press conference at the Malaysian Insurance Summit 2017 here, today.
Kong said world researchers claimed that about 10% of insurance claims were fraudulent, adding that Malaysia registered about RM5.8 billion motor insurance claims in 2016.
He said that fraudulent insurance claims had adversely affected the insurance industry by increasing costs, which would ultimately affect the consumers.
The FIS was officially launch by Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim at the event today.
Meanwhile, in his speech, Muhammad said FIS was a significant step in the right direction.
"By deploying the latest data analytics and network analysis, the FIS is a significant milestone in the industry's effort to combat fraud, but its success and benefit would depend on achieving the widest possible network effects.
"We expect all insurers to support these arrangements, and those who refuse to participate in this scheme will be looked upon unfavourably. We will also take note of their failure to participate in a common good," he added. — Bernama