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Allianz develops machine-learning 'Incognito' tool to support growing fraud claims

Posted: 08 December 2023

With the exponential rise in sophisticated technologies, Allianz aims to stay one step ahead in combatting fraudulent insurance claims with AI technology.

Experts from across the Allianz UK business have collaborated in developing and building a cutting-edge machine-learning tool called ‘Incognito’. Incognito identifies potentially fraudulent claims, which are then referred to a fraud expert for thorough review and investigation.

Since its development, the claims identified have saved £1.7m to date with a further £3.4m held in claim reserves pending conclusion of the investigations..

In an industry experiencing changing volumes, values and types of fraud being perpetrated by ever more sophisticated fraudsters, tools such as these are becoming a crucial part of Allianz’s fraud prevention strategy.

James Burge, head of Counter-Fraud at Allianz Commercial, commented:

“Our internal drive at Allianz has always been to put our customers front and centre. The development of ‘Incognito’ has ensured that we enhance the market-leading service that we provide to our customers. We have been able to settle claims quicker and identify fraud at the earliest opportunity.”

james burge, head of counter-fraud at Allianz commercial

As a leader in commercial insurance, Allianz recognises the marked increase in fraudulent cases across all areas of the business. Application fraud savings have increased by 150% compared to Year-to-Date (YtD) expectations, exacerbated by the economic downturn and a fragile economy, not to mention the cost-of-living crisis.

One particularly high value claim involved storm damage to a property, saving a six-figure sum. The fraud team are also seeing high value cases in motor and casualty claims. A contrived accident claim identified by the tool saved £21K, and another case involved a stolen vehicle is being investigated after being flagged by Incognito.

The huge growth in the use of artificial intelligence, robotics, animation, and the sophistication behind these technologies has meant that impact from an ethical, legal, and regulatory standpoint had to be considered. Allianz’s Risk and Regulatory teams formed an important part of the project team to ensure compliance at every step.

Alex Sorrie, head of claims data at Allianz Commercial, commented:

“The success of Incognito is shown through its cost-saving approach, consistent fraud detection rate over time, automation capabilities, and regulatory compliance. Our partnership-driven approach and use of technology has set a new blueprint for combatting fraud and protecting our genuine customers and their premiums.”

About Allianz Holdings plc

Allianz Holdings plc is the non-regulated holding company which owns the principal insurance operations of Allianz SE in Great Britain including Allianz Insurance

About Allianz

The Allianz Group is one of the world's leading insurers and asset managers with more than 122 million* private and corporate customers in more than 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 717 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.7 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2022, over 159,000 employees achieved total revenues of 152.7 billion euros and an operating profit of 14.2 billion euros for the group***.

*Including non-consolidated entities with Allianz customers.

**As of March 31, 2023

***As reported – not adjusted to reflect the application of IFRS 9 and IFRS 17.

Cautionary note regarding forward-looking statements

This document includes forward-looking statements, such as prospects or expectations, that are based on management's current views and assumptions and subject to known and unknown risks and uncertainties. Actual results, performance figures, or events may differ significantly from those expressed or implied in such forward-looking statements. Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in the Allianz Group's core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) particularly in the banking business, the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates, most notably the EUR/USD exchange rate, (ix) changes in laws and regulations, including tax regulations, (x) the impact of acquisitions including and related integration issues and reorganization measures, and (xi) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

No duty to update

The Allianz Group assumes no obligation to update any information or forward-looking statement contained herein, save for any information we are required to disclose by law.

Sara Robinson
PR Consultant
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