Insurance Fraud Detection: A Statistically-Validated Network Approach

Download This Paper Open PDF in Browser Add Paper to My Library Share: Permalink Using these links will ensure access to this page indefinitely Copy URL Insurance Fraud Detection: A Statistically-Validated Network Approach 50 Pages Posted: 13 Sep 2022 See all articles by Michele TumminelloMichele TumminelloUniversity of Palermo; Carnegie Mellon University - Department of Social and Decision SciencesAndrea ConsiglioUniversity of Palermo - d/SEASPietro VassalloBank of ItalyRiccardo CesariUniversità di Bologna; IVASSFabio FarabulliniBank of Italy Date Written: August 13, 2022 Abstract Fraud is a social phenomenon, and fraudsters often collaborate with other fraudsters, taking on different roles. The challenge for insurance companies is to implement claim assessment and improve fraud detection accuracy. We developed an investigative system based on bipartite networks, highlighting the relationships between subjects and accidents or vehicles and accidents.We formalise filtering rules through probability models and test specific methods to assess the existence of communities in extensive networks and propose new alert metrics for suspicious structures. We apply the methodology to a real database—the Italian Antifraud Integrated Archive—and compare the results to out-of-sample fraud scams under investigation by the judicial authorities. Keywords: Insurance Fraud Detection,Bipartite Networks,Statistically-Validated Networks. JEL Classification: C44, C63 Suggested Citation: Suggested Citation Tumminello, Michele and Consiglio, Andrea and Vassallo, Pietro and Cesari, Riccardo and Farabullini, Fabio, Insurance Fraud Detection: A Statistically-Validated Network Approach (August 13, 2022). Available at SSRN: https://ssrn.com/abstract=4189489 Michele Tumminello University of Palermo ( email ) Viale delle ScienzaPalermo, Palermo 90128Italy Carnegie Mellon University - Department of Social and Decision Sciences ( email ) Pittsburgh, PA 15213-3890United States Andrea Consiglio (Contact Author) University of Palermo - d/SEAS ( email ) Viale delle Scienze, edificio 13Palermo, 90124Italy HOME PAGE: http://portale.unipa.it/persone/docenti/c/andrea.consiglio Pietro Vassallo Bank of Italy ( email ) Via Nazionale 91Rome, 00184Italy Riccardo Cesari Università di Bologna ( email ) viale Filopanti,5Bologna, Bologna 40126Italy0039512094358 (Phone)0039512094367 (Fax) IVASS ( email ) Via del Quirinale, 21Rome, 00187Italy Fabio Farabullini Bank of Italy ( email ) Via Nazionale 9100184 RomaItaly Download This Paper Open PDF in Browser Do you have a job opening that you would like to promote on SSRN? Place Job Opening Paper statistics Downloads 2 Abstract Views 11 PlumX Metrics Feedback Feedback to SSRN Feedback (required) Email (required) Submit If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday. Submit a Paper Section 508 Text Only Pages SSRN Quick Links SSRN Solutions Research Paper Series Conference Papers Partners in Publishing Jobs & Announcements Newsletter Sign Up SSRN Rankings Top Papers Top Authors Top Organizations About SSRN SSRN Objectives Network Directors Presidential Letter Announcements Contact us FAQs Copyright Terms and Conditions Privacy Policy We use cookies to help provide and enhance our service and tailor content. To learn more, visit Cookie Settings. This page was processed by aws-apollo-4dc in 0.204 seconds