Combining the efforts of both the much-hyped big data application AND a unique machine-learning system, a French-based tech start-up firm has seen some $10 million poured into its coffers to advance the potential of its bespoke anti-insurance fraud detection assemblage, courtesy of Facebook. Shift Technology utilises big data together with machine-learning so as to detect patterns of fraudulent insurance claims, which ultimately will help the sector save a significant amount of money annually.
Facilitating what’s described as a ‘software-as-a-service’ approach (which essentially means that over recurrent usage the tools become even more accurate), Shift Technology harvests all the data it collates from its clientbase to then inform and educate future algorithms, according to various news sources which first ran with this breaking story.
This specific (and so-called) ‘decision support platform’ spearheaded by the French company leans toward artificial intelligence (AI) so as to aid and abet companies which focus on combating insurance fraud, whilst automating the laborious process of exploring and pinpointing exact facets of a claim which suggests the presence of fraudulent activities and subsequently arming humans with vital data which will then ensure that they can prioritise which cases to follow up on.
Expanding on what we touched on above, the system is designed to improve over a passage of time (highlighting the scrutiny of user feedback along with additional data), as typifies most accepted machine-learning systems. Since the business model was launched less than 2 years ago, the company implies that it’s processed in excess of 50 million insurance claims, globally, and reports that it’s constantly-improving tech has correctly identified fraud in the region of 75% of this time.
AI-utilising Tech Start-up Bags $10 Million to Advance its Insurance Fraud Detection Cause
This most recent round of investment will allow the company to expand its technical team with a clear view to developing and evolving the existing product, and has become the latest machine-learning start-up to generate far-reaching interest and moreover attract much-needed capital to take it to its next phase.
What’s more, it highlights a growing amount of funding for fraud-detection start-ups, which of late has included the Google Capital-led investment in Pindrop (which automates the process of detecting voice fraud and ID theft). As insurance experts are only too keen to point out, on-going attempts to tackle fraud within this sector is a big deal, fuelled by the underlying fact that insurers generally possess a large pool of financial resources and are therefore always on the look-out for ways in which to optimize the more conventional claims processes in place.
As it stands, fraud detection principles and practices are manually operated, which gives rise to many opportunities for fraudulent activities to go unrecognised; so Shift’s device for putting a red light on suspicious claims heralds the beginning of a new dawn in the eyes of many in the insurance industry.