Digital and finance solutions specialist, MoData, has partnered with IntellectEU, a financial technology company, to help insurance companies across Africa protect themselves against fraudulent claims.
The partnership is expected to give MoData clients access to IntellectEU’s ClaimShare platform, which is specifically developed to detect duplicate claims and to protect insurers from paying them out twice. Almost 10% of insurance claims are estimated to be fraudulent, of which between 5 and 10% are as a result of double-dipping fraud.
Duplicate claims for the same loss events happen hundreds of times a day and are estimated to cost insurers around Ksh. 555 billion (USD 5 billion) to Ksh. 1.111 trillion (USD 10 billion) annually. This ultimately results in higher premiums for customers.
IntellectEU’s innovative ClaimShare platform offers the first opportunity for insurers to collaborate with each other to enhance their fraud detection systems while preserving both business and client privacy.
“MoData is excited to announce this partnership with IntellectEU and to offer the leading-edge ClaimShare platform to its clients across the region, bolstering our fraud detection solutions offering. ClaimShare utilises confidential computing, blockchain and artificial intelligence to assist in early detection of double-dipping fraud, resulting in industry-wide savings in overall insurance fraud loss and cost of operations,” said Clive Gungudoo, MoData’s Director of Financial Crimes and Risk Management.
ClaimShare is easy to integrate and does not require any changes to the insurer’s front, middle or back-office systems. It integrates with claims handling systems and the insurers’ back office systems using simple real-time APIs.
IntellectEU’s ClaimShare platform separates the claims data, which consists of private and non-private data. The non-private data is shared on the permissioned blockchain, while the private data is locked in the confidential computing component. Once claims are suspected of being fraudulent, ClaimShare uses hardware security to ensure robust data security, privacy and regulatory compliance to match the private data. This then confirms the fraud attempt before an insurer duplicates a pay-out for the same claim, eradicating double-dipping fraud.
“ClaimShare is all about collaboration, both between insurers as with our partners globally. With MoData onboard, we’re excited to expand our offering across the African region and support MoData’s clients with their fight against fraud. MoData’s is a true leader when it comes to financial and insurance services in Africa. We’re amazed by the interest and feedback from their clients so far and look forward to fighting fraud together,” said Chaim Finizola, Director of ClaimShare at IntellectEU.