To assess risk relating to new business and accident claims
Korea-based Kyobo Life Insurance has selected SAS to support and enhance its existing risk and fraud management system.
The new system from SAS intends to raise the level of the company’s risk management efforts by applying SAS Analytics to assess risk relating to new business and accident claims, and identify those requiring further examination. Kyobo Life expects to launch the new system in March 2010.
The insurance claims scams can be attempted by policyholders, company employees and attorneys, as well as medical institutions and doctors. Increasingly, major insurers in Korea are seeking systems that detect irregular insurance practices before such claims are paid out.
Through close co-operation with Kyobo Life, SAS Korea is developing a system that provides varied modeling capability. Based on SAS, Kyobo Life will build a system to enable an analytic process for measuring insurance fraud. Kyobo Life expects that the resulting reduction in false claim payouts will lower premium rates and significantly increase their ROI objectives.
Kim Kyung-Lyung, general manager at Kyobo Life, said: “Insurance fraud affects not only insurers, but also policyholders, as fraud leads to increased premiums. 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. 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.”