20th May 2003
Zurich Municipal is to tackle the escalating problem of insurance fraud in the public sector using a new major fraud detection programme. Research by the Association of British Insurers (ABI) shows that nearly 50% of adults would not rule out the possibility of making an exaggerated claim and Zurich Municipal’s existing systems have also picked up an increase in the number of potentially fraudulent claims being investigated since January 2000.
The new programme is designed to improve the detection and combating of fraudulent claims.The approach has already proved to be a success; four suspicious claims were discovered on the first day the system went live.
The initiative revolves around the Claims & Underwriting Exchange Personal Injury database, known as CUE PI, built on a new computer system. CUE PI aims to share data on insurance claims to help identify people submitting multiple claims, or who appear to be serial claimants. The bespoke electronic data capture platform collects and collates a wide range of data from identified suspected fraudulent claims. In order to deliver this new anti-fraud service, Zurich has joined forces with other leading insurers.
Customers will not be charged– Zurich is investing in the system on their behalf. Zurich Municipal believes this is particularly important for public service organisations, where many claims are self funded, with the costs falling directly on the tax payer.
Alan Hunter, Zurich Municipal Claims Manager, said; "While insurance claims fraud can at times be highly organised and is a serious crime, quite often the fraudsters aren’t that sophisticated. Instead, they are frequently shown to be 'amateurs'. However, some are still successful in their dishonest activities."
"Simply by cross checking data using the CUE PI database, we believe that many fraudsters will be caught, and many more will be deterred."
"This database is just one of the steps we are taking to crack down on the problem of claims fraud, which in the case of the public sector is taking money from front line services and ultimately from the taxpayer. Insurance claims fraud in any form is unacceptable. Fraudsters should know that we are actively seeking to identify them and when we do, we will dedicate time, energy and specialist resources, geared to prevent them successfully defrauding local authorities."
"By capturing this data on a daily basis, we will be able to analyse a wide range of features of suspect claims. We will also be able to measure the effectiveness of our anti-claims fraud procedures and practices, and to enhance them where necessary."
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Notes to Editors:
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Zurich Municipal is the leading provider of risk management and insurance solutions to Britain's public services. The company employs nearly 600 staff dedicated to providing expert advice and support to public service providers. For further information visit
www.zurichmunicipal.com -
Zurich Municipal reached its 10th anniversary in March 2003 - a month that also marked the 100th anniversary of Zurich Municipal's predecessor organisation - Municipal Mutual Insurance.
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Zurich Municipal is part of Zurich Financial Services, an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs about 68,000 people.
For further information please contact:
Pritie Billimoria or Robert Blevin
Tel: (0)20 7535 9950
