KGM signs three year deal with fraud specialist

KGM Insurance (KGM) has signed a three year exclusive contract with Absolute CM to provide an outsourced fraud management solution based on cognitive interviewing.

Absolute will handle all theft motor claims on behalf of KGM providing a robust, scaleable service which is fully integrated with the company’s in house claims management and business processes.

KGM had previously used a national enquiry agency, deploying a loss adjusting approach to identifying fraudulent claims. The resulting fraud detection rates were disappointing.

During pilot phase, Absolute successfully detected fraud at a rate of 18% of those cases referred to them by KGM whilst delivering excellent customer service. In addition, claims falling outside of KGM’s terms and conditions within those referred were recognised and referred back to KGM for consideration resulting in a repudiation rate of 14%.

Absolute delivered a resulting return on investment of 475%.

Working to a strict code of conduct and operational standards which support FSA compliance and TCF guidelines, Absolute simultaneously identified and fast-tracked honest policyholders rapidly, supporting KGM’s philosophy to deal with all genuine claims fairly, efficiently and in a timely manner.

Martyn Hardy, Claims Director at KGM said:: “At KGM we select our business partners extremely carefully. Absolute’s delivery represented a compelling business case and we are delighted to embrace them as an extension of our team. Having an out-sourced fraud operation acts as a significant deterrent and out-sourcing our fraud capture to Absolute not only reduces our claims spend in relation to fraud, but gives us increased operational efficiencies and enables us to protect our honest customers. They truly understand our business and will be integral to our future growth.”

Stuart Dennis, Managing Director of Absolute said:: “The point of claim is when a customer realises the true value of the policy they have purchased. At Absolute, we are alive to the need to protect reputation when investigating potential fraud. Our approach, which is based on ‘identifying honesty’, engenders a highly positive customer experience whilst simultaneously effectively detecting fraud. There is great synergy between the culture at Absolute and KGM and we look forward to supporting them in their business goals via this long term partnership.”