Insurance fraud in the form of fake or fabricated car accidents is a common form of fraud in Turkey. Each year car insurance companies in Turkey make payments of millions of dollars to insurance holders, and a non-negligible portion of this constitutes payments due to fraud. The Insurance Information and Monitoring Center (SBM) of Turkey is a central agency that collects data from all insurance companies regarding insurance contracts, customer profiles and accident reports. They then analyze the data and report back to the insurance companies on possible cases of insurance fraud for further investigation.
In early 2016, SBM commissioned BAVLAB with a project to develop new approaches for insurance fraud detection. Upon accessing and analyzing the various dimensions of insurance-related data, our analysts have developed a novel network-based approach for detecting fraudulent cases. While the research is still in progress, we expect that our approach will identify many more cases of car insurance fraud and hence will save many more dollars for insurance companies, which will reflect on consumers as reduced insurance premiums.