ISO, First Notice Alliance Provides Fraud Detection

ISO and First Notice Systems (FNS) have entered into an agreement to deliver a new first-notice-of -loss fraud-detection solution to the property/casualty insurance. The offering enables FNS to extend its current first-notice-of-loss (FNOL) capability to score claims based on client-defined fraud indicators to include a fraud evaluation from ISO ClaimDirector, ISO's claim-scoring and fraud-detection analytical solution. The fraud analysis is delivered to the carrier along with the associated FNOL data in real-time, saving carriers from intensive manual fraud-review processes.

"The incorporation of fraud-detection tools at initial point of collection is critical to increasing the probability of identifying suspicious claims and improving fraud-mitigation results," says Greg Powers, vice president of sales and business development at FNS. "SIU units are alerted immediately with higher-quality referrals, and the scoring data is passed electronically to all appropriate downstream systems."

As part of the arrangement, ISO will create a new version of ClaimDirector specifically for use in first-notice-of-loss situations. Vincent Cialdella, vice president of ISO ClaimSearch, says, "Historical claims information from the ISO ClaimSearch database is particularly effective in helping ClaimDirector identify potential fraud at first notice of loss. By employing anti fraud technology at the beginning of the claim cycle, ClaimDirector can help insurers and other claims organizations quickly automate proper routing and target suspicious claims for investigations."