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Fanset set to launch UBI to reduce insurance fraud

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BY Melody Chikono FANSET International is set to launch a Usage Based Insurance (UBI) in Zimbabwe which aims to reduce insurance fraud by up to 90% while also reducing claim settlement time among other things. A wholly-owned Zimbabwean company Fanset International has operations in South Africa, Zambia, Malawi, Rwanda, Uganda and Ghana. The innovation is […]

BY Melody Chikono

FANSET International is set to launch a Usage Based Insurance (UBI) in Zimbabwe which aims to reduce insurance fraud by up to 90% while also reducing claim settlement time among other things.

A wholly-owned Zimbabwean company Fanset International has operations in South Africa, Zambia, Malawi, Rwanda, Uganda and Ghana.

The innovation is coming at a time the Insurance and Pensions Commission commissioner Grace Muradzikwa recently indicated that the industry was saddled with insurance fraud as between 25 to 30 % of claims paid by the sector were fraudulent.

Fraudulent claims result in loss of financial resources though claims paid to underserving people, but weak internal control systems within insurance companies have been critical in promoting insurance fraud.

Fanset International chief marketing officer Benson Nyahokwe told NewsDay Business that the initiative, which they have launched in other African countries was aimed at assisting insurance companies to offer dynamic pricing to their clients.

This is because the technology analyses drivers’ behaviour, giving them a ranking on top of being able to accurately reconstruct accidents on the road giving insurers accurate information that eliminates fake/fradulent claims.

“We have been solving the big problem of fuel theft for five years now through our fuel monitoring system which helps fleet owners reduce costs by up to 38%. Anchoring on the data of over a billion kilometres of distance travelled by vehicles on our fleet monitoring system, we are now solving the big problem of fraudulent claims that have been affecting insurance companies,” he said.

He added that the solution would enable driver scoring as it analyses the driver’s behaviour through braking, acceleration, turning and driving speed while taking into account other factors such as weather, road types and traffic.

“An instant notification is sent to the insurance company if an accident occurs. This gives them power to assess the vehicle damage immediately. Accident reconstruction allows insurers to reconstruct the accident, through measuring magnitude and parts damaged in the accident. It allows the insurers to eliminate fraud in claims as it informs them on all possible parts damaged in the accident, allowing them to compare what has been claimed by the insured with what Fanset UBI has reported. Insurance portfolio analysis allows insurers to rank and compare different insurance portfolios,” he said.

Nyahokwe said insurers were also likely to experience decreased loss ratio of up to 2,5 times, churn rate decrease of 30%, improved operational efficiency and deep analytics for motor insurance portfolio.

On the other hand, the system encourages safe driving since insurance companies reward good drivers by charging them lower premiums. It is anticipated to decrease customers’ solvency risks while increasing the scrap value of the vehicle among other things.

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