Cracking Down on Deceit: Insurance Companies Unleash Game-Changing Tech to Nab Scammers
Last year, the highest number of insurance frauds ever
Special law revised for the first time in 8 years
Insurance companies use AI
A woman who stole 6 million won from three insurance companies by intentionally causing a car accident last April was caught by the police. From March 2022 to February of this year, intentionally place your hand on a vehicle traveling on a crosswalk or place your left foot on the wheel of a vehicle moving in reverse. Accident caused by intentional contact with a vehicleissued. That’s how insurance fraud was committed.
Frauds that intentionally cause accidents by targeting vehicles that change lanes or enter intersections and steal insurance money are increasing every year. The amount detected for insurance fraud last year was Total KRW 1,116.4 billionincreased by 3.2% from a year ago. The number of people caught was 109,522, an increase of 6.7% from a year ago. Among these, the amount of auto insurance fraud amounted to 540 billion won, nearly half.
Photo source = ‘News 1’
Photo source = ‘News 1’No change for 8 years
Now, just mediation is punishable
Insurance fraud is becoming more violent every day, but the Special Act on Prevention of Insurance Fraud has not been revised even once in the eight years since its enactment in 2016. This was not enough to prevent the ever-evolving methods of insurance fraudsters, and the limitations of the special law were constantly pointed out. Accordingly, on January 25th of this year, the National Assembly Passed the amendment to the Insurance Fraud Prevention Special ActI ordered it.
With the enforcement of the Special Act on Prevention of Insurance Fraud, mediation, inducement, solicitation, or advertising of insurance fraud is prohibited, and violations of this are subject to imprisonment of up to 10 years or a fine of up to 50 million won. Also, even if insurance fraud has not occurred, Just the act of arranging or advertising can be punished
Photo source = ‘News 1’
Photo source = ‘Non-Life Insurance Association’Insurance fraud victim
Elimination of administrative disadvantages
Victims of existing automobile insurance fraud have traffic accident details recorded and, despite being victims, have been subject to administrative disadvantages such as demerit points and fines. Accordingly, the Financial Supervisory Service is collaborating with the National Police Agency and the insurance industry to make it easier for victims of traffic accidents that are confirmed to be insurance fraud. Apply for resolution of administrative disadvantagesA damage relief procedure was introduced.
If you are a victim of automobile insurance fraud and receive administrative disadvantages, you can obtain an ‘Insurance Fraud Damage Confirmation’ online from the Insurance Development Institute, visit the police station, and have the accident record deleted. Apply for resolution of administrative disadvantagesYou can do it. After applying, you may receive notification from the police station that the accident record, etc. has been deleted after reviewing the application, including comparison of insurance fraud damage and traffic accident details.
Photo source = YouTube channel ‘True Story On’
Photo source = ‘News 1’Build your own system
Self-study from past cases
As insurance fraud increases, insurance companies are also using their own AI technology. Establish an insurance fraud detection system It’s in progress. According to the industry, life insurance companies such as Hanwha Life Insurance, Samsung Life Insurance, and Kyobo Life Insurance, and non-life insurance companies such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance have AI systems.
Samsung Fire & Marine Insurance succeeded in detecting a total of 63 cases of insurance fraud worth 3.31 billion won in 6 to 7 months by using AI technology since June of last year. AI learns past accident cases on its ownRelationship analysis techniques using machine learning are playing a major role in detecting insurance fraudsters.
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