Fraud analytics system aims to reduce fraudulent claims by detecting it at an initial stage.
IRDA has shortlisted four bidders – Accenture, IBM, PricewaterhouseCoopers and United Health Group Services for setting up an insurance fraud analytics system. The insurance regulator has called these consortiums for technical bid opening on April 23, 2014.
Fraud analytics system is a web-based security solution that can signal the threat of fraud before it happens. It analyzes suspicious behavior and produces reports for security and risk mitigation purposes. In insurance space, this system aims to reduce fraudulent claims arising out of forged data in insurance policies like health, life and motor segments. Also, it is intended to assist insurers with better screening of proposals at the underwriting stage.
In a circular, IRDA said, “The bids have been found as fulfilling the eligibility norms prescribed under the Request for Proposal (RFP) for industry wide fraud analytics system.”
Earlier, IRDA had called upon a pre-bid meeting for setting up the fraud analytics system on December 18, 2013.