Mize CEO Shares Best Practices for Preventing Warranty Fraud Before It Occurs At WCM 2019
WCM Conference Schedule:
Attendees have some tough choices to make between six different parallel conference tracks. Several continue to repeat the dual themes of warranty fraud detection and the Internet of Things, while many showcase the latest innovations that new technology has to offer to warranty professionals.
Though the opening and closing portions of next week’s Warranty Chain Management Conference are each going to be held in one room, for all attendees to follow together, over the course of the rest of the event, guests will have to make six different choices between the parallel tracks offered in separate rooms.
Right after the back-to-back keynote speeches delivered by Robert Long from Dell EMC on the subject of warranty fraud, and by James Mostofi from AIG on the subject of the Internet of Things, the conference divides into two parallel tracks designed to delve deeper into each topic.
In the IoT track, Albert Liao from Foxconn, David Froning from SAS Institute, and Chris Smith from OnPoint Warranty Solutions take on the topic of the Internet of Things. Liao will first explain some of the challenges ahead, then Froning will look at the value of all that data, and Smith will discuss how it might be put to use.
In the warranty fraud track, Long will moderate a panel discussion that includes Bob Roberts from Thermo King, Erin Duke from Electrolux, book author and consultant Matti Kurvinen, and Ashok Kartham from warranty management software vendor Mize Inc.
Kartham said he expects that each member of the panel will talk about warranty fraud from a different perspective. The Mize approach, he said, is to prevent fraud before it’s committed, by pre-authorizing claims and validate their contents before they’re paid, rather than to detect a pattern of fraud afterwards.
“We’re using business rules to validate claims as they’re being submitted, and we’re using historical information to create a repair profile,” he said, which compares the claim against expectations about what parts will be used and how much time it will take to fix a given type of failure. “Then, whenever we see a claim that varies from that repair profile, we assign a higher risk score.”
Claims that score above a given level are kicked out for further examination. Claims that score below that threshold are paid automatically. “We are trying to reduce fraud by going a bit upstream,” he said. “Most of the time, we are stopping a number of claims from being approved.”
Kartham said there’s certainly a place for fraud detection after the fact. “There is a need for that,” he said. “But I think the best way to deal with fraud is to do it upstream in the process, before the claim gets approved, while the repair is being performed.”
He said he thinks fraud prevention before the fact is best. “Because afterwards, if you try to charge back, the dealer is not going to be happy,” he said. “Plus, how can you prove there’s been fraud?”
Excerpt from Warranty article – https://www.warrantyweek.com/archive/ww20190307.html