Insurance firm to use phone lie-detector to expose fraud

Conor McMorrow, Political Correspondent

Phoney catcher: Hibernian Aviva

Insurance firm Hibernian Aviva is to introduce phone 'lie-detector' technology to Ireland which will enable it to determine whether people are lying about their claims.

The move sees Hibernian follow in the footsteps of US banks and insurance firms who already use such systems. UK banking and insurance giant HBOS also uses "voice-sensitive lie detectors" to cut down on fraudulent insurance claims.

The system, known as a "voice stress monitor" picks up speech patterns such as long pauses before answering questions and has proven successful for other insurance firms.

Although reluctant to give specific details on the company's anti-fraud measures, a spokesman for Hibernian Aviva, which has 1.2 million policy holders in Ireland, said: "We have invested heavily in anti-fraud measures over the years and continue to do so. Fraud prevention and deterrence is a central component in helping us keep insurance premiums at a low level.

"Hibernian Aviva will, later this month, begin a small pilot project that will use voice- analysis technology to record and analyse claims calls. The primary objective of this project is to manage and filter genuine customer transactions more swiftly by enabling our call handlers to more accurately assess claims statements as they are reported. This serves to enhance the experience of genuine customers, while offering appropriate levels of resistance to potential fraudsters."

Hibernian's move comes as the Insurance Industry Federation (IIF) launched a new anti-fraud campaign last Monday.

Michael Horan, non-life manager in the Irish Insurance Federation (IIF), said: "There is definitely an increase in claims in the recession. The number of calls we get to our confidential helpline, where people can report fraud, is running at twice the level of 2008.

"We had 562 calls in the year up to October 2009, compared to 265 in the same period last year. That would suggest the number of fraudulent claims is going up as well."

November 15, 2009

Comments

#1 adrian myers commented, on November 17, 2009 at 2:47 a.m.:

This a complete red herring

#2 Peter Oakes commented, on November 17, 2009 at 12:51 p.m.:

...and let's hope the policy holders have given express (i.e. clear sign-off) consent to this use of their personal data too. Otherwise the insurer will find it very difficult to react in respect of particular circumstances. I wonder if the Data Protection Commissioner was consulted? Does Conor McMorrow know?

Otherwise I can see a possible breach of section 2 of the data protection acts.

#3 Pat Kelleher commented, on November 17, 2009 at 9:50 p.m.:

But isn't it against the law to record telephone calls? If against the law, then all financial institutions that record calls (for whatever reason) are acting illegal?

#4 Fred Byrne commented, on November 20, 2009 at 9:36 p.m.:

Can we, members of the general public use lie detectors when we get calls from Hibernian Aviva concerning the justification of their high rates also ???

#5 term life insurance quotes commented, on November 22, 2009 at 6:23 a.m.:

yeah,"voice stress monitor" picks up speech patterns such as long pauses before answering questions .

#6 Jim commented, on November 22, 2009 at 2:44 p.m.:

Hibernian Aviva are loosing my custom as of today. I found that Quinn Direct are 18% cheaper than Hibernian Aviva for car insurance. How much will it add to their customers premium's to install this expensive technology of 'lie detecting'??

#7 Mickey McGrath commented, on November 22, 2009 at 3:37 p.m.:

I previously complained to Hibernian Aviva about their high premium rates for my car insurance. I had been with them for 5 years with no claims. Yet, they increased my premium in 2008 and also in 2009.

They refused to address my complaint. I left them and will never go back.

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