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Fraudulent whiplash claims cost motorists £2.5 billion in the UK alone
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US insurers estimate up to 15% of pay-outs are dishonest claims
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New technology will improve safety, and aim to lower premiums for policy holders
The innovations are designed to save both time and money for insurers and their customers. With over 1,500 whiplash claims per day recorded in the UK alone[1], claims for neck injuries are among the most common and complex for insurers to deal with.
The issue of fraudulent whiplash claims is one of the most significant problems facing the insurance industry; with false neck-injury claims estimated to costs motorists £2.5 billion per year in the United Kingdom alone[i]. Some insurers estimate that around 50% of fraudulent claims are part of organised crime, and can add around £50 on to every policy holder’s premium[ii]. Similarly, insurers in the US estimate that up to 15% of pay-outs are for fraudulent cases[iii].
In order to ease the burden on both insurers and the end-insured, Scope Technology has developed an industry-leading telematics offering for the global insurance industry. This encompasses innovative hardware and software, which can monitor vehicle safety, and analyse relevant data in the event of a crash.
By using its patented crash related algorithms, Scope is able to determine the vehicle impact zone, angle and severity of each impact. By mapping this against a huge bank of crash data, research on physical injury and neural network models, Scope can gauge the likelihood of physical injuries. This technology can greatly improve the efficiency and accuracy of the claims handling process for the insurer.
This, in turn, will help insurers combat fraud and fast track the claims adjudication process, resulting in lower insurance premiums for other policy holders. In addition, the newly improved system, which transmits vehicle information and accident analysis to a central platform in real-time, will enable faster medical attention for drivers in cases of genuine injury.
Scope Technologies are a market leader in the Usage Based Insurance (UBI) space, providing insurance companies with a comprehensive insurance telematics solution. Their patented technology, data and research, enables the insurer to produce more accurate risk modelling for future crashes and claims, reducing the likelihood of fraud, and ensuring better client retention.
Commenting on the announcement, Monty Nussbaum, Chief Executive of Scope Technology said:
“There is a considerable gap in the current market, and the process around claims support is an area in which UBI carriers across the globe are not effectively served. These features will strengthen our existing offering, and ensure our customers have access to the most advanced claims support technology on the market. The improved platform should also save money for both insurers, and ultimately, their customers.”
The improved platform is targeted at usage-based insurance carriers (UBIs). UBI is a new initiative in the insurance industry whereby the insurance carrier utilises driving behaviour and vehicle usage patterns to determine the insured’s risk & associated premium. This differs greatly from traditional motor-insurance, which is based on driver experience and previous safety record.
Scope which was originally founded in 1999 to meet the evolving needs of the fleet insurance industry. Over the past 15 years, Scope has established itself as a global leader in insurance telematics and fleet solutions. With a global presence, Scope’s range of products are sold in 55 countries on five continents, and utilised by major corporations.
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