Kyobo Life Insurance selects SAS® to reduce and prevent fraud

SEOUL  (Oct. 07, 2009)  –  Kyobo Life Insurance, one of Korea’s largest life insurers, has selected SAS^® to support and enhance its existing risk and fraud management system. The new system from SAS, the leader in business analytics software and services, will raise the level of the company’s risk management efforts by applying sophisticated SAS Analytics to assess risk relating to new business and accident claims, and identify those requiring further examination. Kyobo Life expects to launch the new system in March 2010.

Insurance claims scams can be attempted by policyholders, company employees and attorneys, as well as medical institutions and doctors. Increasingly, major insurers in Korea are seeking systems that detect irregular insurance practices before such claims are paid out.

Through close cooperation with Kyobo Life, SAS Korea is developing a system that provides varied modeling capability. Based on SAS, Kyobo Life will build a system to enable an analytic process for measuring insurance fraud. Kyobo Life expects that the resulting reduction in false claim payouts will lower premium rates and significantly increase their ROI objectives.

“Insurance fraud affects not only insurers, but also policyholders, as fraud leads to increased premiums,” said Kim Kyung-Lyung, a General Manager of Kyobo Life. “Starting early next year with this new system, we will protect our policyholders more effectively by improving business performance and preventing unnecessary and unfair insurance claims payouts. The new system is expected to increase customer satisfaction and the competitiveness of the company’s marketing practice, which will help retain our best customers.”   

”Combining SAS’ technologies and Kyobo Life Insurance’s existing management systems will provide a range of insurance fraud models and perform the analysis as part of the operational process,” said Choi Byung-Jung, Project Manager on SAS Korea’s Crime and Compliance team. “It could change the way insurance fraud is identified, from post-accident detection to payment prevention.”

In Korea, SAS is being used successfully by Samsung Life and is currently being implemented at Hyundai Marine and Fire Insurance, the country’s top non-life insurers. SAS Fraud Management was chosen as “Technology Innovation of the Year Award” by Frost & Sullivan in September 2008.

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