September 14 (SeeNews) - IBM said on Wednesday it was selected by Bulgaria's Insurance Guarantee Fund to help develop a smarter computing solution that would bring drivers and insurance companies faster customer service and decreased levels of insurance fraud.
The sophisticated information system will give motor insurance providers the opportunity to check and verify online all the necessary information regarding Motor Third Party Liability (MTPL) insurance in Bulgaria, IBM said in a press release.
Under the contract, the initial investment of the Insurance Guarantee Fund in the smarter computing system is set at 3.0 million levs ($2.1 million/1.53 million euro).
The new system, based on IBM software, hardware, services and business analytics technologies, will enable local and international motor insurance agencies to improve the efficiency of motor insurance processes.
The automated system will lead to more accurate and rapid decision making, reducing costs, improving customer service and cutting the number of fraudulent claims. Responsible drivers will be rewarded with lower insurance premiums thanks to the integration of various pools of information including police archives.
“The solution which Guarantee Fund preferred over other competitive solutions and delivered by IBM will enable the Bulgarian motor industry to optimise performance, mitigate risk and better control costs,” the CEO of the Insurance Guarantee Fund, Borislav Mihailov, said in the statement.
"For us it is very important to integrate data across multiple sources allowing for the effective monitoring and coordination of insurance claims bringing benefits to insurance providers and drivers alike.“
The Guarantee Fund is a government-backed organisation that is part of the Bulgarian motor insurance industry, ensuring the sustainability, efficiency and transparency of services. It also acts to ensure that accident victims are compensated in a fair and timely manner and that Bulgarian and European standards are observed.
One of the areas to benefit from the integration of data is fraud prevention. The system will eliminate a series of mistakes that have up till now been done due to the manually filled policies.
According to the statistics, currently about 25% of all insurance MTPL policies in the country are duplicated or unreal. Thanks to the consolidated view, the smarter computing solution will reduce the possibility of fraudulent and abusive claims while improving and accelerating customer service. This is accomplished through a combination of data mining technology, data visualisation techniques and a powerful scoring and anomaly discovery engine.
(1 euro=1.95583 Bulgarian levs)