SBM pushing the button for organized fraud
Insurance Information and Monitoring Center General Manager Aydın Satıcı stated that systems to detect organized fraud are ready.
Insurance fraud is the bleeding wound of the insurance industry...As the technological face of the insurance industry, Insurance Information and Monitoring Center (SBM) carries out detailed projects to prevent fraud. SBM General Manager Aydın Satıcı stated that they're using the best products to detect and prevent fraud and their goal is to detect organized fraud. Satıcı said "We've started planning our fraud prevention projects in 2014. We started using SAS for fraud prevention. The system is ready and our teams have started using the application".
Satıcı mentioned that the major parameter in pricing is the claim and prices would be much lower when there's no claim and said, "We don't have the luxury of telling the beneficiaries 'don't make any claims'. By detecting and stopping the individuals, groups or structures that exploit the system, we can lower the claim figures".
Satıcı stated that average liability insurance premium for automobiles is around 260 TL and that the prices are too low compared to the benefit they provide. Satıcısaid "If we are to detect and prevent 16 million TL worth of fraud in 5 billion TL liability insurance claim payment per year, that would mean 1 TL discount for every policy. When it is 160 million, it comes to 10 TL, and when it is 1,6 billion TL, it comes to a discount of 100 TL."
The industry works hard like ants
Insurance Information and Monitoring Center (SBM) General Manager Aydın Satıcı stated that the insurance coverage provided by the insurance industry is over 30 times the GDP of Turkey. Satıcı said, ""An ant can lift up to 50 times of its weight". Satıcı stated that the total annual volume of the industry is 26 billion TL and the risk covered by this volume is worth 63 trillion TL.
Satıcı stated that the number of insurance beneficiaries increases every day but it is still under the desired level. Satıcı sited as follows, the main reasons to this low insured rate: Society's lack of confidence in insurance, people's belief that nothing would happen to them and that the insurance premiums are high. Satıcı stated that in Turkey where the insurance industry's business volume is around 26 billion TL, insured rate is only 1.5% and added that this rate is around 6.5% in European countries.
Annual transaction volume: 8 billion transactions
Satıcı stated that SBM handles around 8 billion transactions per year and that it corresponds to 650 million transactions per month. Satıcı also mentioned that the number of transactions handled by SBM is much higher than that of most banks in Turkey.
Satıcı indicated that the amount of policies generated on a daily basis is 75 thousand for liability insurance, 25 thousand for comprehensive coverage and 100 thousand for life insurance and said "Currently 16 million liability insurance policies, 5 million comprehensive coverage policies and 26 million life insurance policies are active. One person has more than one life insurance policies. In fact total number of beneficiaries is around 11-12 million."
Satıcı stated that SBM receives in real time, any information, claim or policy sent by the insurance companies and said "Everyday, 100 thousand liability and comprehensive coverage policy arrives in SBM's database. And other information as well arrives in SBM's data base on the same day".
We'll be able to forecast the future
Satıcı stated that SBM will be able to make forecasts using analytical applications and prevent insurance fraud. Satıcı stated that on average, 3 thousand accidents with material damage take place everyday and that half of these accidents take place in Istanbul. Satıcı indicated that, thanks to the Mobile Accident Report, they will be able to provide location-based statistics within three years and said "And we'll be making forecasts based on these statistics. And for instance we'll be able to say 'chances of an accident taking place in front of this hotel on this day and at this time is this'." Satıcı also stated that, just by looking at the customer data and actions, most companies will be able to see weather or not the customer will cancel his/her policy.
SBM can see the big picture
Satıcı stated that it is possible to prevent fraud even before it takes place by utilizing analytical applications and said, "Every insurance company made some investments to prevent fraud and they continue to do so and they will in the future as well. With the data they have at hand, they can see this only from a certain perspective. But the data we have at SBM allows us to see the bigger picture with all its stakeholders". Satıcıindicated that SBM has all agency, vehicle, beneficiary and policy information and said: "If a certain insurance company is able to detect 5% of any fraud that takes place, SBM has the capacity to detect 25% of it.".
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