Tokio Marine partners with Shift Technology for fraud detection in fire insurance
Tokio Marine & Nichido Fire Insurance has announced a collaboration with the French InsurTech startup Shift Technology to deploy an AI-based mechanism for the detection of fraudulent claims in fire insurance. The algorithm, which will take external data such as weather information into account, will be used in claims processes nationwide from August 2022 onwards.
Tokio Marine has such AI-based claims processing support already in place for automobile and accident insurance. By applying AI-based scoring, the human claims agent can get an early indication of the likelihood of fraud for each case, thus ensuring that those claims where the possibility of fraudulent claims is low are being paid quickly, and referring those claims with higher risk scores to further scrutiny.
This method is particular effective in the midst of frequent natural disasters such as typhoons and heavy rains, when the claims volume is extremely high. Employing system-supported countermeasures against fraudulent claims has proven essential from the perspective of operating a sound and stable non-life insurance system, maintaining the trust of the insurance business, and ensuring fairness across all policyholders.
According to Crunchbase, Shift Technology has raised a total of USD 545m up to its Series D, which took place in two parts in May and November 2021. Shift opened its Tokyo office in 2019.
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