Jersey City, N.J. - ISO and claims technology provider First Notice Systems (FNS) have entered into an agreement to deliver a new first-notice-of-loss (FNOL) fraud-detection solution to the property/casualty insurance marketplace.
The joint offering enables FNS to extend its current first-notice-of-loss (FNOL) capability to score claims based on client-defined fraud indicators within the FNS ClaimCapture product. The software will now include a fraud evaluation from ISO ClaimDirector, ISO's claim-scoring and fraud-detection analytical solution. The fraud analysis is delivered to the carrier along with the associated FNOL data on a real-time basis, saving carriers from intensive manual fraud-review processes.
"The incorporation of fraud-detection tools at initial point of collection is critical to increasing the probability of identifying suspicious claims and improving fraud-mitigation results," said Greg Powers, vice president of Sales and Business Development at Boston-based FNS.
As part of the arrangement, ISO will create a new version of ClaimDirector specifically for use in first-notice-of-loss situations. Vincent Cialdella, vice president of Jersey City, N.J.-based ISO ClaimSearch, indicated that "historical claims information from the ISO ClaimSearch database is particularly effective in helping ClaimDirector identify potential fraud at first notice of loss. By employing antifraud technology at the beginning of the claim cycle, ClaimDirector can help insurers and other claims organizations quickly automate proper routing and target suspicious claims for investigations."
As property/casualty insurers seek to reduce the cost of claims fraud -- estimated to cost insurers in the U.S. at least $30 billion a year -- many are turning to automated fraud-detection tools. Gartner, a leading provider of research and analysis on the global information technology industry, recommends that insurance companies "explore automated fraud-detection tools to help speed the identification of fraudulent claims, optimize limited personnel capabilities and minimize losses."
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