NEWS & VIEWS
IDSL
15 September 2008
CWMC APPOINTED AS AN IDSL APPROVED DATA QUALITY CONSULTANT
Data Quality and the fight against fraud
(Extract from IDSL paper)
Working Together to Enhance the value of CUE and MIAFTR Databases
Insurance fraud remains a serious issue for the industry despite the pooling and exploiting UK General Insurance data. The Association of British Insurers (ABI) estimates the cost of general insurance fraud at a staggering £1.6billion per annum – adding approximately 5% to customers' insurance premiums.
On behalf of members, IDSL has spent considerable time and effort over recent months reviewing the value that the databases provide, the quality of the data contained in the databases and considering how to ensure that more value can be derived to assist in the evaluation of risk and reduction in fraud.
Acknowledging Progress
Members have subscribed data to CUE since 1994 and over time we have seen an improvement in both the scope of data input and its quality. During its 15 year history, IDSL has established a number of milestones on behalf of its members and the insurance industry generally, latterly assisting in the development of the Insurance Fraud Bureau and supporting the IFB's on-going role in the disruption of organised cross industry fraud.
The need to enhance our data
At the heart of the success of the CUE and MIAFTR databases lies the quality and regularity of the data input by IDSL members. For the databases to provide maximum benefit at a time when policyholders and others are under even greater financial stress there needs to be a further step change in the scope and quality of data input.
IDSL members face some key challenges if we are to continue to pool data that has a genuine impact on insurance fraud.
The benefits of enhanced data
Good quality and rich claims data will boost confidence in the use of CUE and MIAFTR records.
Identifying the Challenges
The scope and accuracy of the data stored on the industry databases and the regularity that information is submitted both have a direct correlation to the huge cost of insurance fraud to insurers and their customers (in terms of inflated premiums). Developing the databases, ensuring the quality and scope of the records held and the use of the data is an important strategic business process and as such it should not be relegated to the position of an unimportant time consuming administration function.
To help with this we have taken some practical steps to support members with this challenge.
IDSL - Creating Practical Steps Towards Enhanced Data
To assist members provide short term resource to review and implement changes to enhance the quality and regularity of the data they input to the databases, IDSL has created a panel of independent consultants and consultancies with the relevant expertise who can be commissioned directly by member organisations for this work, helping to ensure maximum benefit is gained from membership.
What Happens Next?
If you do not have internal resource to review, IDSL recommends that you consider the list of consultancies and consultants attached and initiate discussions with those who have the most relevant expertise to meet the needs of your organisation.
IDSL believes that there are considerable gains to be made from CUE and MIAFTR databases by all members and for those members who cannot assign internal resource the external specialists will be able to give guidance and assist in streamlining data inputting processes and simplifying the future capture of meaningful data. Genuine bottom line benefits should be achievable through the industry-wide quest to minimise insurance fraud and its associated costs, coupled with meeting the FSA Treating Customers Fairly regulations.
Fraser Fundell
IDSL
