Advanced analytics helps fight insurance fraud in Turkey

Turkey’s Insurance Information and Monitoring Centre, called SBM, is tasked with developing solutions to improve profitability in the insurance sector. One of the key concerns is effectively combating fraud that erodes profit margin and confidence in the industry, and increases rates. SBM estimates that between 10 and 30 percent of all claims are fraudulent.

Aydin Satici, the Managing Director of the Centre, spoke with SAS about what they hope to accomplish by using an analytics-driven approach to combat fraud.

With analytics we believe we can catch as much as 25 percent of the fraud.

Aydin Satici
Managing Director

Why is SBM taking a lead role in fighting fraud?

We're the only entity that has view of the data for the whole industry – the big picture. Insurers in the Turkish market write 15 million traffic insurance (crash) policies and 5 million comprehensive car insurance policies. There are 2.5 million claims filed each year. All of that data comes in to our Centre.

What were you looking for in a technical solution?

The ability to see links between data to find fraud networks and to deal with big data. Organized crime perpetuates quite a bit of fraud. We wanted to be able to search and retrieve similar past cases with conclusively proven fraud and build risk models that score claims. We also wanted to be able to search social media. We share those scores with insurers and with the Insurance Fraud Prevention Bureau.

Do you have a goal in mind for fraud reduction?

While the insurance firms are able to catch only 5 percent of all fraud through their own means, with analytics we believe we can catch as much as 25 percent of the fraud. This should help our companies become more profitable. When insurance firms are able to identify fraud and avoid claim payments they would otherwise have to make, it will have a substantial impact on their profit margins. And it should keep insurance rates lower.

Can insurance companies opt out of searching for fraud on their own?

Absolutely not. We’re looking at fraud across multiple insurers, often perpetuated by organized crime networks. Individual insurers need to look for fraud on their own networks. Hopefully, when they see what we’re doing, they’ll become interested in using analytics at their companies, too.


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