Information services firm Experian India today launched a solution that will help life insurance companies detect frauds.
'Hunter Fraud Management Services' will help life insurance companies to be a part of the Hunter Closed User Group (CUG) and have access to data relating to new policy proposals and claims, Experian India said in a release here.
Experian is looking to offer similar services to general insurers as well.
"We have over 43 banks sharing data in the CUG and using the Hunter services to identify potential fraudulent applications.
"Today, more than 50 per cent of retail banking applications are screened through National Hunter on a monthly basis," Experian India Country Manager Mohan Jayaraman said.
He said over the last 10 years, the Indian insurance industry has grown at a compounded annual growth rate of around 20 per cent. However, with the exponential growth in the industry, there has also been an increase in frauds.
"With life insurance companies now being added to this framework, we will be able to pull out fraudulent applications or policy proposals quickly," he added.
Commenting on the development, Life Insurance Council Secretary V Manickam said, "We believe this framework would help tighten the system, thus helping insurers save money on account of false claims."
"According to sources, insurers lose about 6 per cent of their revenue annually due to fraud. With insurance claim frauds on the rise, risk management in insurance is crucial," Manickam added.
