EQUIFAX COMBATS U.K. INSURANCE FRAUD

WITH INSURANCE FRAUD IN THE UNITED KINGDOM SKYROCKETING TO $592 MILLION ANNUALLY, EQUIFAX INC. WILL PROVIDE FOR THE U.K. INSURANCE INDUSTRY A CLAIMS HISTORY DATABASE EXCHANGE THAT WILL ENABLE PARTICIPATING COMPANIES TO COLLABORATE IN KEEPING TRACK OF THE RECORDS OF THEIR POLICY HOLDERS.

THE ATLANTA-BASED COMPANY LAUNCHED IN THE U.S. IN 1987 ITS C.L.U.E. (COMPREHENSIVE LOSS UNDERWRITING EXCHANGE) SYSTEM WHICH CONTAINS INFORMATION ON INSURANCE CLAIMS FILED BY INDIVIDUALS DURING THE PAST FIVE YEARS.  TODAY, 85% OF THE AUTOMOBILE INSURANCE AND 30% OF THE PROPERTY INSURANCE WRITTEN IN THE U.S. ARE WRITTEN BY COMPANIES THAT SUBSCRIBE TO C.L.U.E.

EQUIFAX ALREADY SERVES BANKS AND OTHER FINANCIAL INSTITUTIONS, RETAILERS AND MARKETING COMPANIES IN THE UK THROUGH PRODUCTS AND SERVICES PROVIDED BY EQUIFAX EUROPE LTD. IN LONDON, ONE OF THE LARGEST PROVIDERS OF CREDIT AND CONSUMER INFORMATION IN THE U.K.

IN THE U.K. THERE HAS BEEN A CULTURAL SHIFT AWAY FROM INSURANCE FRAUD BEING CONSIDERED ACCEPTABLE, SAID DEREK V. SMITH, EXECUTIVE VICE PRESIDENT, EQUIFAX INSURANCE SERVICES GROUP.   CONSUMERS NOW SAY ‘INSURANCE FRAUD IS COSTING US MONEY,’ ‘INSURANCE FRAUD IS A CRIME,’ AND ‘WE NEED TO CATCH THEM.’

EQUIFAX HAS BEEN WORKING WITH THE ASSOCIATION OF BRITISH INSURERS FOR MORE THAN A YEAR TO DETERMINE WAYS IT COULD ASSIST IN THE REDUCTION OF FRAUD, SPECIFICALLY IN THE HOME MARKETPLACE (HOME OWNERS), THE MOTOR MARKET (AUTOMOBILES) AND THE TRAVEL MARKET.  A FIVE-YEAR CONTRACT, WHICH IS RENEWABLE ANNUALLY THEREAFTER, WAS ANNOUNCED IN LONDON NOV. 16. 

THE HOME MARKET PRODUCT IS EXPECTED TO BE LAUNCHED IN MID-1994 AND THE AUTOMOBILE PRODUCT, SIX MONTHS LATER,  TO BE FOLLOWED AT A STILL UNDETERMINED TIME BY A TRAVEL MARKET PRODUCT, SAID MR. SMITH.

IN THE CASE OF THE AUTOMOBILE MARKET, MR. SMITH CITED THE NEED FOR THE INFORMATION IN CASES SUCH AS WHEN AN INDIVIDUAL TAKES OUT NUMEROUS POLICIES AND THEN DESTROYS THE AUTOMOBILE TO COLLECT ON THEM ALL.  LOST ITEMS ALSO MAY BE CLAIMED ON HOMEOWNERS AND TRAVEL POLICIES, HE ADDED AS ANOTHER EXAMPLE OF THE TYPE OF FRAUD WHICH RESULTED IN THE NEW AWARENESS OF HONEST POLICYHOLDERS, WHO BEAR THE COSTS FOR THE DISHONEST ONES.

THROUGH THIS COOPERATIVE EFFORT OF SHARING INFORMATION, SAID MR. SMITH, THE INDUSTRY WILL BE IN A POSITON TO KNOW MORE ABOUT INDIVIDUAL HISTORIES ACROSS A BROADER SET OF COMPANIES.

ESTABLISHED IN 1899 IN ATLANTA, EQUIFAX TODAY HAS 12,000 EMPLOYEES LOCATED IN THE U.S., CANADA AND EUROPE.  RVENUES FOR THE YEAR ENDED DEC. 31, 1992, WERE MORE THAN $1 BILLION.