AXA leverages cross-sector data to help boost fraud detection by 50%

The Ambition

When AXA reviewed their existing fraud tools, they identified noticeable gaps in their fraud detection capabilities, with a lower than desired rate of fraud being detected at application stage.

Underwriting & Fraud Managers David Needham and Thomas Boorman know the inherent fraud risks within the fast-paced, high-volume and price-sensitive insurance sector. They quickly recognised they were behind the curve compared to other large insurers when it came to fraud detection at application, exposing the business to sophisticated fraud typologies and future claims losses.

The Objective

Working in an organisation that often built their solutions internally, David and Thomas recognised they needed to work with a specialist external supplier to improve their controls.

Their limited real-time insight and robust fraud controls were making them vulnerable. They wanted valuable intelligence delivered through real-time automation to support their teams and protect the business.

The Solution

Synectics Solutions was the provider of choice - the breadth and depth of the cross-sector data within National SIRA was key to AXA’s decision. Partnering with an established specialist with over 30 years’ experience provided reassurance and confidence to the team.

“Synectics stood out as our preferred partner to work with due to their established expertise and invaluable cross-sector risk intelligence. We didn’t want to miss out if the other big insurance players were National SIRA members and we weren’t. The proof of concept demonstrated that National SIRA provides a large amount of data we hadn’t come across in any other fraud reports or data we had,” David recalls.

Unlike other providers, Synectics’ SIRA solution delivers both the National SIRA data and an intuitive case management web portal. Combining risk intelligence, rule strength and business policy allows different applications to follow different pathways. This reduces unnecessary manual review, focusing resource on higher-risk applications and supporting faster outcomes for lower-risk customers, without weakening fraud controls. 

The Results

“The project was seamless, as was the migration of nearly a quarter of a million claims and 1.8 million policies. From early on, between 80 and 90% of fraud was caught by SIRA ERT. That saved us money on aggregators and admin,” says Andy.

Feeding ERT with esure’s historical risk data provided greater context and control. With OO, the team reshaped how fraudulent enquiries were filtered and handled.

“Accurate, real-time decisioning means we automatically accept, decline or block applications and stop far more fraud at the gate. Especially that linked to repeat fraudsters and synthetic identities.” Andy adds.

The shift transformed esure’s fraud operations. Previously, the Policy Fraud Team reviewed SIRA matches manually. Now, automated decisioning blocks volumes equivalent to a month of investigative effort, with live visibility from quote through to policy, mid-term adjustment, and First Notification of Loss.

The Impact

David and Thomas achieved a 50% increase in identified fraud, as well as cost benefits, operational efficiencies and improved customer experience.

“Customer and cost benefits became quickly apparent. We can use the savings made from blocking high-risk applications to lower prices for good customers who are a better risk selection for us. Real-time quotes and National SIRA data through the SIRA solution helps us make more informed decisions for declines, referrals and accepts and influences our pricing strategy, which ultimately benefits the customers we want to attract.” Thomas explains.

AXA also noticed a significant cultural shift. Wider pricing and underwriting departments became more aware of the importance of fraud data because the solution gave them access to previously hidden insight, improving colleague knowledge and effective collaboration between teams.

David and Thomas believe this work has helped build strong foundations for future fraud innovation. It has prompted them to focus on the whole customer journey, thinking strategically about the controls needed for mid-term adjustments and renewals, not just at policy inception, which ultimately provides greater protection and reduces claim losses.

About our Client

AXA UK is one of the UK's leading insurance and financial protection companies, serving millions of customers. It is a major operating part of the global AXA Group,and stands as one of the largest insurance brands in the world with 147,000 employees serving 94 million clients in 50 countries.