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Automatic Fraud Detection — Does it Work?

Published online by Cambridge University Press:  10 May 2011

I. Lægreid
I. Lægreid
Affiliation:
White Label Insurance AS, Harbitzalléen ZA, Box 434 Skøyen, 0213 Oslo, Norway., Email: Irene.Lagreid@whitelabel.no
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Abstract

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The aim of automatic fraud detection is to assist claims handlers by selecting claims which are potentially fraudulent. Such methods must be based on information routinely available. The present paper makes use of logistic regression and the validity of these models as demonstrated on fresh data from household and motor insurance. A second contribution is a strategy for selecting claims that should receive further attention.

Keywords

Insurance FraudFraudulent BehaviourAutomatic Fraud DetectionProbability of Fraud

Information

Type
Papers
Information
Annals of Actuarial Science , Volume 2 , Issue 2 , September 2007 , pp. 271 - 288
Copyright
Copyright © Institute and Faculty of Actuaries 2007

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