Orange Life to Predict Insurance Fraud in Advance Using Big Data and AI

Orange Life Headquarters Building

[Asia Economy Reporter Oh Hyung-gil] Orange Life announced on the 10th that it has established the insurance industry's first fraud prediction model applying big data and artificial intelligence (AI) technology.

They formulated various hypotheses related to past detected insurance fraud cases, created about 150 variables based on these, analyzed internal and external big data, and then applied technologies such as machine learning and deep learning to build the model.

The model can determine the intention of insurance fraud from the time of contract signing and quickly identify high-risk targets. This is based on the fact that a significant portion of insurance fraud cases involve signing up for insurance with the intent to fraudulently claim insurance money from the contract signing stage.

Over the past four years, Orange Life has operated two statistical models through its Fraud Detection System (FDS) for insurance claims and customers with frequent accidents, detecting over 300 fraud cases annually and preventing insurance leakage exceeding 4 billion KRW.

Orange Life plans to apply the prediction model to the Fraud Detection System and conduct real-time insurance fraud monitoring. For contracts with high fraud risk, they will proactively notify financial consultants (FC) or the relevant branches in advance to engage in active fraud prevention activities.

Jung Moon-guk, CEO of Orange Life, stated, "Insurance services applying various big data prediction models, blockchain, and AI technologies are being built and operated by the in-house technical capabilities of Orange Life employees," adding, "We will accelerate customer-centric innovation that strengthens the essence of insurance business and enhances customer value by utilizing digital technology."

This content was produced with the assistance of AI translation services.