New telematics technology to help insurers tackle fraudulent whiplash claims
The issue of fraudulent whiplash claims is one of the most significant problems facing the insurance industry; in the UK, false neck-injury claims are estimated to costs motorists £2.5bn per year. Some insurers estimate that around 50% of fraudulent claims are part of organised crime, and can add around £50 on to every policyholder’s premium. And insurers in the US estimate that up to 15% of payouts are for fraudulent cases.
Scope Technology’s new telematics offering for the global insurance industry encompasses hardware and software that can monitor vehicle safety, and analyse relevant data in the event of a crash.
By using its patented crash-related algorithms, Scope is able to determine the vehicle impact zone, angle and severity of each impact. By mapping this against a huge bank of crash data, research on physical injury and neural network models, Scope can gauge the likelihood of physical injuries. This technology can greatly improve the efficiency and accuracy of the claims handling process for the insurer.
This, in turn, will help insurers combat fraud and fast track the claims adjudication process.
In addition, the newly improved system, which transmits vehicle information and accident analysis to a central platform in real-time, will enable faster medical attention for drivers in cases of genuine injury.
Monty Nussbaum, chief executive of Scope Technology, said: “There is a considerable gap in the current market, and the process around claims support is an area in which usage-based insurance carriers (UBIs) across the globe are not effectively served. These features will strengthen our existing offering, and ensure our customers have access to the most advanced claims support technology on the market. The improved platform should also save money for both insurers, and ultimately, their customers.”