Development of an expert system for the automatic detection of automobile insurance fraud

Belhadji El Bachir and Georges Dionne ()
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Belhadji El Bachir: HEC Montreal, Canada Research Chair in Risk Management

No 97-6, Working Papers from HEC Montreal, Canada Research Chair in Risk Management

Abstract: The goal of this study is to develop a tool to aid insurance company adjusters in their decision making and to ensure that they are better equipped to fight fraud. This tool is based on the systematic use of fraud indicators. We first propose a procedure to isolate those indicators which are most significant in predicting the probability that a claim may be fraudulent. We applied the procedure to data collected in the Dionne-Belhadji study (1996). Our second step was to develop software allowing us to use the results of the statistical model to estimate the probability of fraud in files and to decide whether or not an in-depth investigation should be conducted. This software contains the mathematical equation and the parameters calculated by the Probit model.

Keywords: Insurance fraud; insurance fraud detection; fraud indicators; probability of fraud; Probit model (search for similar items in EconPapers)
JEL-codes: D81 G22 (search for similar items in EconPapers)
Pages: 54 pages
Date: 1997-08-01
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Working Paper: Development of an Expert System for Automatic Detection of Automobile Insurance Fraud (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:crcrmw:1997_006

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