Korea Post Insurance is upgrading its insurance fraud response system using artificial intelligence (AI). The plan combines machine learning-based predictive models with the existing rules-based detection method to detect early signs of increasingly sophisticated and organized insurance fraud.
The Korea Post, which operates under the Ministry of Science and ICT (MSIT), announced Tuesday that it is pursuing a project to upgrade Korea Post Insurance's AI-based Insurance Fraud Detection System (IFDS).
The project began in earnest with a launch briefing on June 12 and is being carried out as the first task of the artificial intelligence transformation (AX) that Korea Post Insurance is pursuing. The Korea Post has previously screened abnormal transactions according to predetermined business rules. In this project, AI technology will be integrated with the existing method to build an integrated predictive model in which AI learns from various insurance claim and contract data, predicts patterns with a high likelihood of insurance fraud, and detects suspicious signs in advance.
The Korea Post plans to enhance the system's effectiveness by reflecting the IFDS construction and operation cases and know-how of private insurers in a manner suited to Korea Post Insurance's work environment. In particular, the Korea Post expects that this project will improve insurance fraud prediction and detection capabilities while also enhancing the efficiency of investigation and screening work. It is expected to contribute not only to preventing insurance payout leakage and protecting subscribers, but also to improving the reliability and financial soundness of Korea Post Insurance.
