MSIG Insurance (Singapore) Pte Ltd and Fermion Merimen - Insurer Innovation Award 2023

1. Insurer Innovation Award 2023
The Digital Insurer (TDI)
Joint submission by MSIG Insurance (Singapore) and Fermion Merimen
Combating Motor Insurance Fraud
with advanced AI technology

2. 2
Who We Are
• More than 100 years in Asia
− Among the Top 5 general insurers in
Singapore by GWP*
− Strong focus on delivering digitally
innovative & customer centric solutions
• Claims Initiative of the Year 2020
(Video Interaction Technology)
• Claims Initiative of the Year 2018
(FAST Claims)
• Asia’s Most Transformative Insurer
• Digital Insurer of the Year 2018
• Best Electronic Solution 2018
(FAST Claims)
• Insurer Claims Team of the Year 2016
* Based on 2022 Gross Written Premiums, GIA Statistics for the Singapore Insurance Fund
• Operates in 10 key markets
− Insurance ecosystem builders
− US$10B+ premiums and claims processed
− US$150K+ claims processed monthly
155
Insurers & Takaful Operators
9,000+
Workshop & Repair Centres
560+
Lawyers
750+
Loss Adjusters
350+
Part Suppliers
24,000+
Intermediaries
Broad Customer Base

3. 3
Fraudulent motor claims amount to millions each year
Source: General Insurance Association of Singapore https://gia.org.sg/images/resources/For-Consumers-PDF-file/CASE-2018-motorfraud.pdf
About 20%
of all incurred
motor claims
in Singapore are
fraudulent 1

4. 4
• Insurance fraud affects the welfare of policyholders and contributes to increasing motor
insurance premiums.
• Fraud in the motor insurance industry impacts not just financial profits but also physical lives. For
example, staged accidents may damage the physical and mental health of the drivers affected and
even endanger passengers and pedestrians.
Insurance frauds are costly to motorists & insurers
Challenges for Insurers
Limited view
relying on own data
Resource intensive
e.g. screen & check
Large amounts of data
1
2
3
Structure the data
for analysis 1
Automate tasks 2
Tap on
industry-wide data 3
Solution

5. 5
Solution? A customised Artificial Intelligence tool developed
jointly by Fermion and MSIG Insurance

6. 6
How Fermion’s Truesight Fraud Intelligence stands out
• Taps on data from
1. Millions of motor claims processed
annually by insurers using Fermion’s
eClaims system.
2. Hundreds of data points from Fermion’s
entire motor ecosystem which includes
repair workshops, adjusters, lawyers and
drivers etc, lending it greater accuracy.
• MSIG spent 6 months on a pilot study to
customise the AI model and built in data sets
and decision-making rules.

7. 7
Once data is processed by Fermion’s eClaims platform, the AI tool makes recommendations by
assessing the potential for fraud. Aggregated results of automated checks performed from hundreds
of data points which are then presented as a visual network diagram to help claims specialists
quickly identify fraudulent activity as they occur.
Egocentric network diagram

8. 8
For Illustration Purpose

9. 9
Effectiveness
& Impact
50%
of screening checks
are automated, freeing
claims staff to focus on
higher-value work
SGD100K
savings estimated
per annum for MSIG,
with the potential to
increase over the years
Faster turnaround time
for claims processing
Reduced risks of paying
fraudulent claims
Flexibility to expand
usage to other
insurance classes
This industry-first
initiative has generated
interest from other
Insurers to follow suit

10. Thank you