NICB Turns Its Claims Data Bases Over To ISO In Move To Fight Insurance Fraud
The National Insurance Crime Bureau (NICB) recently transferred its claims and related data bases and software to <%=company%> (ISO). The NICB data and software will move from Palos Hills, IL., to ISO's Data Center in Pearl River, NY., later this year.
"This agreement marks an historic all-out fight to stem the flow of more than $20 billion a year to cheats who perpetrate fraud," said Fred R. Marcon, ISO's chairman, president and chief executive officer. "We have the commitment, and with an all-claims data base, we'll have a powerful weapon to detect and inform our customers of potential fraudulent claims. Moreover, enhanced technology and software employed by our new systems will accelerate the handling of meritorious claims."
ISO will merge the NICB's vehicle claims data with the claims data bases maintained by their own American Insurance Services Group (AISG) unit. The move will create a single data base containing bodily injury, property, workers compensation and vehicle claims. NICB's other data bases will be maintained by the ISO but will be maintained separately. These contain a variety of vehicle-related data from sources other than insurance companies.
"The integration of the data bases makes the most of the strengths of the NICB and ISO," said John G. DiLiberto, NICB's president and chief executive officer. "The NICB will now refocus our efforts to provide unique solutions to the problems of deterring, detecting and preventing insurance-related crime. What ISO brings to the fight against insurance crime is the ability to manage and analyze the data bases to strengthen earlier detection of fraud."
Under the NICB-ISO data-integration agreement, ISO will manage the data that insurers provide to the NICB. Data mining and link analysis techniques are being planned to analyze the massive amounts of data in the combined AISG and NICB data bases. With such techniques, ISO will look across different lines of insurance to identify similarities in claims patterns and other common links in a variety of data. Law enforcement personnel will continue to be provided with portions of the data by the NICB at no additional cost.
ISO has established a claims council drawn from the NICB's board of governors and the AISG's former directors to guide development of the all-claims data base and related services. "Besides increasing the odds of identifying insurance fraud, the all-claims data base will eliminate redundant costs of maintaining separate data bases and reporting data twice," DiLiberto said.