Allianz develops machine-learning ‘Incognito’ tool to tackle growing fraud claims

With the exponential rise in sophisticated technologies, Allianz aims to stay one step ahead in combatting fraudulent insurance claims with AI technology.

Experts from across the Allianz UK business have collaborated in developing and building a cutting-edge machine-learning tool called ‘Incognito’. Incognito identifies potentially fraudulent claims, which are then referred to a fraud expert for thorough review and investigation.

Since its development, the claims identified have saved £1.7m to date with a further £3.4m held in claim reserves pending conclusion of the investigations.

In an industry experiencing changing volumes, values and types of fraud being perpetrated by ever more sophisticated fraudsters, tools such as these are becoming a crucial part of Allianz’s fraud prevention strategy.

James Burge, head of counter-fraud at Allianz Commercial, commented “Our internal drive at Allianz has always been to put our customers front and centre. The development of Incognito has ensured that we enhance the market-leading service that we provide to our customers. We have been able to settle claims quicker and identify fraud at the earliest opportunity.”

As a leader in commercial insurance, Allianz recognises the marked increase in fraudulent cases across all areas of the business. Application fraud savings have increased by 150% compared to Year-to-Date (YtD) expectations, exacerbated by the economic downturn and a fragile economy, not to mention the cost-of-living crisis.

One particularly high value claim involved storm damage to a property, saving a six-figure sum. The Fraud team are also seeing high value cases in motor and casualty claims. A contrived accident claim identified by the tool saved £21K, and another case involved a stolen vehicle is being investigated after being flagged by Incognito.

The huge growth in the use of artificial intelligence, robotics, animation, and the sophistication behind these technologies has meant that impact from an ethical, legal, and regulatory standpoint had to be considered. Allianz’s Risk and Regulatory teams formed an important part of the project team to ensure compliance at every step.

Alex Sorrie, head of claims data at Allianz Commercial, commented: “The success of Incognito is shown through its cost-saving approach, consistent fraud detection rate over time, automation capabilities, and regulatory compliance. Our partnership-driven approach and use of technology has set a new blueprint for combatting fraud and protecting our genuine customers and their premiums.”