Insurance fraud is a huge issue for the industry, estimated to cost insurance companies and agents globally more than US$40 billion per year. A particular challenge is “double dipping” fraud, where one insured event such as a motor insurance claim is claimed twice from two different insurers. But now a solution is at hand: ClaimShare, a leading-edge fraud detection application. Built on R3’s Corda Enterprise and Conclave platforms, ClaimShare was developed through a collaboration between IntellectEU and KPMG, and recently won the global Corda Challenge: Insurtech from R3 and B3i.
Using blockchain and confidential computing technologies to help insurers collaborate and mitigate fraud, ClaimShare is generating huge interest and excitement across the insurance sector. To share more about the solution, and the benefits and opportunities it opens up, R3 recently hosted a webinar where Victor Boardman, R3’s head of insurance for EMEA & APAC, was joined by ClaimShare director Chaim Finizola and Kami Zargar, ACA Director and Head of Forensic at KPMG in Belgium.
At the beginning of the session, Victor introduced Conclave, and its revolutionary impact which springs from its ability to allow information from different companies to be pooled together for joint analysis while keeping the underlying raw information confidential. Explaining that confidential computing keeps data cryptographically secure at rest, in transit and also in processing, Victor expanded: “That means the data can be pooled between multiple insurance companies and brokers, safe in the knowledge that the underlying information can’t be seen by any party, not even the operator of the service.”
Why is such a solution needed? KPMG’s Kami took up the story: “By some estimates, insurance fraud is the second most common type of fraud after tax fraud…and it is estimated that only half of it is detected. So we have been working over several years with the insurers and regulators to define solutions that will help them detect and manage this issue within the bounds of what is possible, given that there have historically been limitations around data, etc, in terms of how to tackle this issue.”
A large proportion of the insurance fraud that’s going undetected is believed to be double-dipping fraud – and ClaimShare’s Chaim explained how the solution addresses this type of crime: “We’ve worked to create an application that would enable the sharing of claims data between different insurers to detect double dipping fraud without needing to make changes to their back office or front office systems. Previously, there has never been a technology that enabled the sharing of data in a fully compliant manner. Using Corda and Conclave as a platform was a game changer, allowing us to share data and match the sensitive data while being fully compliant.”
Chaim went on to provide the webinar attendees with a live demo of ClaimShare in action. To see this – and learn more about how ClaimShare provides insurers with a powerful new weapon in their battle against fraud – click here to view the webinar in full.
Want to learn more?
Here are some helpful resources to learn more about Privacy-Enhancing Computation (PEC), Confidential Computing and Conclave.