LONDON—March 17, 2011—FICO (NYSE:FICO), the leading provider of analytics and decision management technology, today announced that the UK car insurance specialist Admiral will use FICO analytics to fight motor insurance fraud. Admiral, with more than 2 million UK customers, will use FICO motor insurance fraud models, business rules and an innovative link analysis tool to detect more fraud and reduce the cost of fraudulent claims.
According to a 2010 report by the Association of British Insurers, incidence of motor insurance fraud for 2009 reached at least £410 million, making this the largest insurance fraud category in the UK. Admiral estimates that FICO’s solution will save Admiral millions of pounds in fraudulent claims payments.
“Admiral is committed to offering lower premiums to more people, and reducing fraud will help us keep rates low,” said Susan Evans, fraud manager for UK Operations at Admiral. “FICO analytics will enable us to stop more fraud while providing superior customer service. In addition, the tools from FICO enable our fraud team to focus on the most complex cases, and easily develop and modify our fraud strategies as new patterns emerge.
“Our evaluation led us to conclude that FICO’s system detected significantly more fraud than market-leading alternative suppliers,” Evans added. “Our existing fraud systems are very strong, but the FICO proof of concept demonstrated clearly how we could do even better at detecting newer and ever-changing forms of organized fraud. We have worked with FICO for many years and we are excited to put their innovative new fraud detection solution to work in our business.”
With the FICO solution, Admiral will score each motor insurance claim submitted to its claims centers using FICO’s powerful fraud models to determine the likelihood of fraud before payment. Additional business rules developed using the FICO™ Blaze Advisor® business rules management system will give fraud investigators more flexibility in prioritizing and handling claims tagged as potentially fraudulent.
Claims with the highest likelihood of being fraudulent will be analyzed using an advanced visual analysis tool developed by FICO’s research team. This tool uses link analysis to find connections between potential frauds and other claims, in order to find evidence of fraud rings and identify as-yet undiscovered fraud.
“Insurance fraud is a costly problem for everyone, leading to higher premiums for consumers and reduced profitability for insurance companies,” said Mike Gordon, vice president and managing director for FICO in Europe, the Middle East and Africa. “By investing in sophisticated insurance fraud analytics from FICO, Admiral is demonstrating leadership while serving its customers’ interests and fortifying its competitive position.”
Launched in 1993, Admiral (a trading name of EUI Ltd) is part of the Admiral Group plc. The Admiral Group (www.admiralgroup.co.uk) employs more than 3,700 people in the UK and has more than 2 million UK customers. Admiral Group plc is a UK FTSE 100 company.
FICO is a recognized leader in fighting fraud, both in banking and insurance. FICO™ Insurance Fraud Manager is the first healthcare insurance fraud solution that uses analytics to detect fraud prior to claims payment. FICO™ Falcon® Fraud Manager is the leading solution for credit and debit card fraud, protecting more than 2 billion cards worldwide.
FICO (NYSE:FICO) transforms business by making every decision count. FICO’s Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations the power to automate, improve and connect decisions across their business. Clients in 80 countries work with FICO to increase customer loyalty and profitability, cut fraud losses, manage credit risk, meet regulatory and competitive demands, and rapidly build market share. FICO also helps millions of individuals manage their credit health through the www.myFICO.com website.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Decision Management strategy and reengineering plan, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to realize the anticipated benefits of any acquisitions, continuing material adverse developments in global economic conditions, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2010. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.
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