SEOUL, May 27 (Korea Bizwire) — Kyobo Life Insurance Co., one of South Korea’s leading life insurers, said Tuesday that it has started developing and operating its own insurance fraud prediction system that incorporates artificial intelligence (AI) machine learning technology.
K-FDS (Kyobo Fraud Detection System) is a system that enables AI to learn insurance fraud types on its own, find targets that show similar behavior, and immediately respond to instances of insurance fraud.
The industry’s previous AI insurance fraud detection system was mainly operated for the purpose of determining the appropriateness and the amount of insurance payments by focusing on insurance claim information.
On the other hand, K-FDS focuses on identifying fraud risks early in the process and a preemptive response, the company explained.
K-FDS learns vast amounts of data such as subscribers, insurance solicitor, medical institutions, insurance contracts and accident information through machine learning techniques.
It then serves to classify groups where fraud occurs frequently and to predict the possibility of fraud. In some cases, information on suspected conspirators is extracted and presented.
Kyobo Life developed K-FDS on its own by incorporating know-how of experts from a special investigation team with digital technology and operated the new system on a trial basis from July 2018 to improve accuracy and utilization.
K-FDS has already prevented as many as 200 cases of unfair insurance payments during the trial period, the company explained.
Kevin Lee (email@example.com)