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Benchmarks Web

Fraud Capability Benchmark

Analyzes the strategy and performance of the fraudulent claims unit and identifies opportunity for additional savings

The Fraud Capability Benchmark is an add-on to the Motor Claims Study and dives deep into the management of fraudulent claims. The benchmark allows you to compare your fraud strategy against peers and identify specific areas of opportunity. Preventing fraud translates into improved performance across the entire claims function.

Why it's important

Fraudulent claims cost insurers millions every year. Finalta studies demonstrate that fraud strategy and capability varies greatly across the market. As legislation changes, insurers must react quickly to constantly shifting risks. The Fraud Capability Benchmark helps participants address critical questions such as:

Underwriting Risk Mix:

  • What is our exposure to fraud given our underwriting mix?

Fraud Funnel:

  • How efficient is our fraud process from referrals to investigations and defeated claims?
  • Do we prioritize and triage claims effectively to maximize defeat rates?

Fraud Savings:

  • How can we improve our performance in specific fraud types?

Preventative Strategy:

  • Should we invest in technology, people, or both to identify and prevent further fraud?

Methodology

Our unique methodology utilizes claim-level data to identify differences in performance within comparable segments, for example, young policyholders with lower value vehicles located in the North West of the UK, or mid-value vehicles in high-density areas of London. We employ our large motor indemnity database to calculate comparable fraud savings regardless of different methodologies across insurers, creating a genuine like-for-like comparison versus peers. Our experienced analysts understand the trade-offs in claims strategies and help to identify opportunities in the context of each insurer’s individual needs.

Evaluate the risk mix segments

Fraud referral,investigation
and defeat rates

Quantify your normalized
fraud savings

Understand your strategy
and capability