Method for Selection of Motor Insurance Fraud Management System Components Based on Business Performance
Method for Selection of Motor Insurance Fraud Management System Components Based on Business Performance

Summary/Abstract: Fraud in motor insurance is assessed to incur annual losses in the range of 100 billion dollars. While much research exists in the fraud management field, majority only deals with partial problems and presupposes the independence of specific fraud management activities. Researches on components of fraud management system are rarely explicitly related to business performance improvements. These results in a common problem, which can be observed on the practitioners’ side: only small amount of companies can objectively assess which of the many fraud management system components proposed by researchers and vendors will help to solve their problems in fraud management. The method proposed in this paper can be used as a strategic tool for improvement of fraud management process in motor insurance companies. The method is designed to be used for a selection of fraud management system components, and is based on business performance. The input for the method is a set of key performance indicators that an insurance companies wish to improve. The result is a set of activities, which should be improved, and a set of fraud management system components that should be used to improve these activities. The paper presents and explains the method and its components. The method components have been developed based on the data received from Slovenian motor insurance companies and method is evaluated in three case studies.

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