LocalTapiola (LähiTapiola) uses a SAS® hybrid solution to prevent insurance fraud and money laundering

LocalTapiola life insurance company, which is one of Finland’s largest insurance operators, has selected SAS Institute as its partner in preventing fraud and money laundering. SAS provided LocalTapiola with a tailored and modern hybrid solution to combat and prevent crime. 

LocalTapiola life insurance company, which is one of Finland’s largest insurance operators, has selected SAS Institute as its partner in preventing fraud and money laundering. SAS provided LocalTapiola with a tailored and modern hybrid solution to combat and prevent crime.
According to financial industry calculations, the annual value of insurance fraud in Europe is around 13 billion euros. LocalTapiola/LähiTapiola life insurance company has decided to implement the most advanced technology in the sector to prevent fraud.

“Our customers want us to provide safe service in real time whenever it’s suitable for them. Modern technology means that we can process insurance claims very quickly and deposit the money into the customer’s account,” explains CIO Mikko Vastela from LocalTapiola.

“Of course, the increase in online transactions also involves some challenges. Criminals rapidly implement new fraudulent methods and some ordinary policyholders may also be guilty of misconduct, such as exaggerating the amount of a claim.”

A hybrid model for detecting fraud

Customers always end up paying the cost of fraud in their insurance premiums. This is why LocalTapiola is committed to using all modern methods to prevent fraudulent activity and protect its good customers.

“The SAS® solution for detecting and preventing insurance fraud is based on a hybrid model that combines tools such as machine learning, text analytics and automation. A separate data model is produced for each insurance type, which increases the likelihood of identifying fraudulent activities that are typical of certain insurances,” explains Kimmo Havu, Managing Director for SAS Finland.

“The SAS solution allows us to detect potentially fraudulent activities in real time and start investigations. We perform the analysis while the claim is being completed. As a result, we can provide our honest customers with a claims service that is just as fast as before,” says Vastela.

Crime prevention benefits society

LocalTapiola selected the SAS solution because the company has extensive experience with preventing international fraud in the banking and insurance sector.

“The fact that our partner has an in-depth understanding of our industry and international development is important to us. Although we’re using SAS’s international software, the product is tailored for Finnish conditions and our company needs,” says Vastela.

LocalTapiola has already been quite successful in uncovering insurance fraud by means of its insurance investigators. However, the company expects this new solution to further decrease the losses caused by insurance fraud.

“Organised insurance fraud often involves several different parties. Advanced analytics allow us to quickly combine data and find links between these parties. As a mutual company owned by our customers, this work benefits policyholders and society as a whole because we can detect and trace crime more effectively and then deal with it,” explains Vastela.

“The system we’re now implementing will provide more effective screening of suspicious behaviour and the links between different parties, thus helping us prevent organised money laundering and terrorism at the international level.”

Further information:
SAS Institute Finland, Managing Director, tel. +358 400 6044, e-mail: kimmo.havu@sas.com

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