Social Network Analytics & Fraud Detection for Insurers

What is idNetwork? 

idNetwork is idFusion’s social network (graph data) risk analysis toolbox and a key components of the idFusion real-time fraud detection solution. idNetwork empowers carriers to fully leverage current and historical underwriting, claims, billing and other data in real-time interactions to: 

  • Associate policies into communities of household members, service providers, agent books and beyond
  • Identify known and suspected fraudsters during live transactions, 
  • Actively monitor and measure emerging fraud risk levels as policies and books develop by timelining critical policy events and associated data,
  • Conduct sophisticated investigations of individual policies and books of business using graph database tools. 

Why do I need idNetwork? 

Did you know that 15-25% of your new customers are likely returning customers? Would you be surprised to learn that as much as a 20-25% of returning customer applications are associated with a previously known fraud event or entity? Do you know how to find and intercede in such risks before you write new business or pay a claim? 

A successful fraudster gets your money before you can catch them – and they know you are looking for them. In today’s online customer engagement model, they also know that they can ‘hide in the data’ by changing or modifying personal, rating, billing and claims information to avoid detection. But they cannot easily hide their whole identity – you just need to combine enough information to meaningfully connect the dots and see their attempts to obscure their identity and intent. 

And that is exactly what idNetwork does. By employing leading edge entity resolution and graph tools to associate quotes, policies and claims, we can identify persons, places and other entities that are connected within and across a carrier book, and group them into relevant ‘communities’ such as households.  With idNetwork, we can see odd connections. We can link previous quotes, policies and suspicious claims with new business. We can show carriers when a person (or a close associate or other entity) they already know as a fraudster enters their network and take appropriate action during the sale or prior to paying a claim. 

idNetwork combines real-time transactional risk assessment capabilities with a powerful analysis toolkit that allows investigators to search for anomalous relationships and questionable connections across the entire book and over time. Shared addresses, phone numbers, emails, listed drivers and more are easily discovered and investigated with a few keystrokes using idNetwork. 


How is idNetwork Delivered? 

idNetwork is offered as an integrated service bundled with the idFusion platform. Carriers can choose two general types of deployments: 

  • Point of Sale Monitoring. idNetwork can be supplied with live application data (rating data, vendor-supplied data) and with SIU/external criminal data sets to identify potential bad actors at point of sale. When combined with idResolve and idQuoteMonitor, this approach reduces rate evasion and the likelihood that a serial fraudster gets a coverage offer. 
  • Whole Book Analytics & Continuous Monitoring. idNetwork can be loaded with current and historical data from policy, billing, claims and other systems plus vendor-supplied data. This allows rich pattern detection, deep search capabilities, risk scoring and continuous monitoring of the active book, and enables users to explore and understand connections between active and prior policies.  This can be of particular value to SIU investigators looking for high risk connections and patterns in the book.

Case Example

How VeracityID Stops Premium Write-offs and Early Cancellation in New Business – Stopping Serial Non-payers

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