This is a case study into how a global law firm*, operating in insurance, transport, energy, infrastructure and trade, uses i2 Analyst’s Notebook and iBase to counter fraud.
Businesses that operate in sectors as varied as insurance and transport, energy and trade, and commodities all face the same challenge: fraudulent claims that typically relate to compensation and other associated losses.
For a global law firm that works with a diverse range of clients across all these sectors, helping it to identify and manage fraud risk relating to such claims is both complex and extremely challenging. Despite having developed arguably one of the most advanced counter fraud systems on the market, the company was committed to continually remaining one step ahead of the criminals.
Armed with a state-of-the-art system that could integrate information from the firm’s case management systems, in addition to drawing on records provided by the insurance industry, and external intelligence and data sources, senior decision makers identified an opportunity to collaborate with i2 and draw on its mapping and analysis expertise to further advance and enhance the counter fraud services it offers its clients.
Using the mapping and analytical tools i2 Analyst’s Notebook and iBase provides has enabled the law firm to improve how it stores and manages the data it holds across all the claims that it handles. Thanks to the firm’s data sharing agreements, its advanced system has now been enriched with additional intelligence that enables its counter fraud teams to be more effective in their identification of suspicious claims. This is one area where the i2 software delivers added value.
The firm’s case data is extensive and draws on both internal and external intelligence records, notably data from insurers, corporate/self-insured clients, such as fleet, transport and retailers, as well as from local authorities.
The i2 software helps the firm’s analysts to data wash all this incoming external intelligence against the millions of individual records the advanced system stores.
This means firm’s counter fraud team is better placed to act on the additional claims data that is stored in the firm’s extensive claims portfolio, some of which is not widely accessible to the general insurance industry. Also, because the data covers all insurance product areas, i2’s software can support how the firm assists its clients to track transient fraud risks.
Another benefit that the i2 software offers is the additional support it provides in combating the organised crime involved in fraudulent activities.
The firm holds specific fraud data that covers organised fraud ring intelligence, and this is critical in enabling its team to identify who the high-risk enablers are in the claims supply chain. Thanks to i2’s mapping tools, the firm has been able to build up a significant library of intelligence on the main protagonists involved. The software has also helped its analysts to track emerging risks. This is invaluable because it means the firm can communicate these risks to clients, so they are always kept informed of fraudulent developments.
Since moving from a system that relies primarily on Microsoft Excel to undertake data analysis to the i2 software, the company has identified a number of significant, and tangible, improvements in its counter fraud work.
To start with, the software provides an additional line of defence when it comes to identifying fraudulent activities, which not only has improved the firm’s identification of when fraud leakage occurs but has also driven up detection rates. This, in turn, translates into cost savings and a reduction in the firm’s indemnity spend.
In addition, the software’s support in helping to assist the counter fraud teams to identify early on claims that indicate fraud has occurred as well as multiple claims, enablers and anomalies has contributed to improved retention rates within the claims fraud teams.
Another benefit that the software’s mapping and analysis provides is the way it helps the firm track transient fraud risks across different production lines.
Drilling down into the firm’s extensive data set, the software also risk scores this against an enriched external dataset, which allows the firm’s analysts to identify unknown fraud risks.
Soon after the firm deployed the i2 software, it partnered with a regional police force in the UK to investigate an insurance fraud case that was valued at £1.5m. At the time, this was an investigation into the single, largest case brought by the insurer involved.
During the investigation, the i2 software enabled the firm to map and analyse a network of individuals (and associated entities), which helped to convict 25 individuals who were handed sentences ranging from imprisonment to community orders. Significantly, the ringleader was sentenced to three years in prison and the court issued fines totalling more than £35,000.
i2 Analyst’s Notebook was exceptionally useful as it was deployed in both the criminal and civil investigations. Significantly, its analysis provided the prosecution with the means to identify the criminal network involved, the relationship between the associated entities and how those individuals interacted with one another to commit the fraud.
For more information about how i2 Analyst’s Notebook and iBase can help you meet your investigation goals, contact us or book a demo here.
* The firm has asked to remain anonymous because of the sensitive nature of its anti-fraud activity.