HDI Seguros strengthens fraud prevention with SAS solutions

The Brazilian insurer increased the number of frauds identified by 43% year-over-year

Since 2016, HDI Seguros has restructured itself to optimize fraud prevention by better identifying fraudsters and reducing cases of false positives that affected the customer experience. It used fraud prevention solutions from SAS, a leader in AI and analytics, to invest in a journey of continuous evolution. Among the results of this investment, HDI Seguros increased the number of frauds identified by 43% from 2021 to 2022.

“If we don’t know how to identify a fraud action through accurate assessments, we won’t be able to reduce bottlenecks and waste in the company,” said Director of Operations and Claims at HDI Seguros Leandro Bordon.

He added that recent changes were extremely important for the company to have the people and technology to scale faster, more efficient and flexible processes and face the constant evolution of fraudsters.

The project faced many challenges at its beginning. Together, SAS and HDI Seguros defined the analytical decision engine in accordance with internal rules. Starting in the automobile vertical, they combined predictive models with business strategies, and scanned the insurer’s entire database to correct anomalies.

“SAS brought technology that helped us analyze external and internal data for greater accuracy,” said Leandro Bordon, Director of Operations and Claims at HDI Seguros.

“We are able to look at the relationship network of fraudsters and customers with more intelligence, as it involves the complex interconnection of several elements, such as location, contacts, credit score, damages reported in the claim and other information.”

Bordon highlights that SAS' anti-fraud solutions also helped HDI Seguros understand key factors in the prevention process, such as risk propensity, fraud types of greatest concern and enabling real-time decision making.

Reducing false positives was another aspect of improving the customer experience. In addition to reducing cases, the insurer reduced the investigation SLA and evaluation time, all factors that contribute to optimizing the insurance customer’s experience.

In 2019, with the good results in the automobile sector, the company expanded the fraud prevention project to the property sector, consolidating the new, more agile fraud identification process in the company.

“Those who act in bad faith reinvent themselves every day, so we need to be prepared to identify and stop different types of fraud quickly,” said Bordon.

“In this sense, we will continue on this journey of evolution to always have the best possible operational intelligence.”

International reference

The successful project became an example for foreign markets. It was presented by Leandro Bordon at SAS Innovate in Orlando, a global conference that brought together experts from around the world to present trends and success stories in industry applications of AI and analytics.

Ricardo Saponara, leader of the fraud and financial crime prevention practice for the Americas region of SAS, highlighted that, among the factors that made HDI Seguros successful in using SAS technology, the understanding and connection of technology with business strategies, investments focused on results and training to enable organic growth, reduced the total cost of ownership and maintenance.

“The entire team was trained to extract the full potential of technological solutions, thus being able to create, monitor and adjust fraud prevention strategies independently, maximizing the accuracy of the program on a constant basis for HDI,” said Saponara.

“Fraud prevention is a very relevant aspect of insurance companies’ strategy, impacting claims rates, prices and customer experience, and needs to be constantly modernized. This is certainly another aspect that led the company to be successful.”

This is an English translation of a news release issued by SAS Brazil on Oct. 30, 2023. See original announcement.

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Brazilian insurer HDI Seguros used SAS anti-fraud technology to revamp and optimize its approach to fraud prevention.