Software can tell if insurance claimants lying

PLANS by companies to install software that detects people making fraudulent insurance claims were welcomed yesterday.

With insurance fraud expected to cost over €100 million this year, the Insurance Federation of Ireland said both companies and policy holders would benefit from the development.

Two Irish companies have expressed interest in acquiring the software, created by British-based firm Digilog, which is headed by a former police detective.

The software analyses voice patterns, and detects subtle changes which can point to the claimants lying.

Those making claims are asked general questions which identify normal stress levels. Subtle tonal changes caused by narrowing of the larynx, as blood is pumped faster through the body, can then be picked up by the software and can indicate lying.

In Britain a number of firms have already used the software successfully.

Highway Insurance said that since installing the software the number of claims withdrawn by people had almost tripled. HBOS, Britain’s biggest mortgage lender, is using the system to reduce household insurance scams.