JERSEY CITY, N.J., & BOSTON, Mass., Nov. 7, 2005 — ISO and First Notice Systems (FNS) have entered into an agreement to deliver a new first-notice-of-loss (FNOL) fraud-detection solution to the property/casualty insurance marketplace.
The joint offering enables FNS to extend its current first-notice-of-loss (FNOL) capability to score claims based on client-defined fraud indicators within ClaimCaptureTM to now include a fraud evaluation from ISO ClaimDirector®, ISO's expert claim-scoring and fraud-detection analytical solution. The fraud analysis is delivered to the carrier along with the associated FNOL data on a real-time basis, saving carriers from intensive manual fraud-review processes. With these new capabilities, the carrier's internal SIU unit is better able to identify and combat fraud efficiently and effectively.
"The incorporation of fraud-detection tools at initial point of collection is critical to increasing the probability of identifying suspicious claims and improving fraud-mitigation results," said Greg Powers, vice president of Sales and Business Development at FNS. "By working with ISO, FNS can now provide clients with a robust up-front fraud-detection capability that combines real-time, rules-based FNOL scoring with ISO's sophisticated fraud analytics engine. SIU units are alerted immediately with higher-quality referrals, and the scoring data is passed electronically to all appropriate downstream systems."
As part of the arrangement, ISO will create a new version of ClaimDirector specifically for use in first-notice-of-loss situations. Vincent Cialdella, vice president of ISO ClaimSearch, indicated that "historical claims information from the ISO ClaimSearch database is particularly effective in helping ClaimDirector identify potential fraud at first notice of loss. By employing antifraud technology at the beginning of the claim cycle, ClaimDirector can help insurers and other claims organizations quickly automate proper routing and target suspicious claims for investigations."
As property/casualty insurers seek to reduce the cost of claims fraud — estimated to cost insurers in the U.S. at least $30 billion a year — many are turning to automated fraud-detection tools. Gartner, a leading provider of research and analysis on the global information technology industry, recommends that insurance companies "explore automated fraud-detection tools to help speed the identification of fraudulent claims, optimize limited personnel capabilities and minimize losses."
Finally, Gartner recommends that carriers "incorporate front-end detection capabilities with new efficiencies in back-office processes to enable complex decisions to be made with a high degree of accuracy."1
1. Gartner Research "Deploy Detection Technologies to Cut Insurance Fraud and Abuse" by J. Galimi, A. Earley. April 20, 2005.
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Clients use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.
About First Notice Systems, Inc.
Founded in 1993, First Notice Systems®, Inc., is a premier provider of claim reporting and customer service solutions to the insurance industry. With many national clients now utilizing First Notice Systems' claims reporting services and software products, First Notice successfully connects insurance carriers, third-party administrators and self-insureds with their customers through a combination of call center outsourcing services and rules-based Web technology. First Notice Systems, Inc., is a wholly owned subsidiary of Concentra Inc.
First Notice Systems and Concentra are registered trademarks of Concentra Operating Corporation. All rights reserved.
Susan Douglas (FNS)