The Hong Kong Federation of Insurers (HKFI) has launched the Insurance Fraud Prevention Claims Database (IFPCD).
Through its state-of-the-art AI technology, the IFPCD which was launched on 1 December 2018 will be able to help detect different types of insurance fraud, particularly those involving multiple claims and syndicates.
The relevant AI technology is provided by Shift Technology, a French company based in Paris with an office in Hong Kong.
“By nature, fraud is not easy to detect. In respect of indemnity insurance, experience in other markets overseas shows that for every $100 paid out in claims, about $10 to $15 would involve certain elements of fraud,” said Mr Harry Wong, chairman of the HKFI Provisional Executive Committee on IFPCD.
“Hong Kong is lagging far behind many other insurance markets in terms of fraud detection and prevention. We need to move ahead quickly to catch up. Hence this IFPCD to protect the interest of honest policyholders,” added Mr Wong.
An independent steering committee comprising distinguished community leaders and experts in related fields is set up to oversee the proper establishment and operations of the IFPCD to ensure that public interest is well safeguarded.
The IFPCD is being developed in phases. Phase 1 will cover motor, medical and personal accident insurance. Since 1 December 2018, insurers have been able to upload the required data onto the IFPCD. As part of Phase 2 and 3, HKFI will continue to grow its IFPCD to include life and travel insurance.
The HKFI has made the setting up of the claims database one of its top priorities under Vision 2028 and its five-year plan.