“Finovox is the solution Luko was waiting for to effectively combat document fraud. Its team and tool are the key strengths of Finovox.”
Marie-Colombe Pineau, Head of Fraud and Claims at Luko
In France, the Insurance Fraud Agency (ALFA) estimates that insurance fraud results in a loss of 2 billion euros annually. According to a study by Le Lynx in 2022, 20% of insured individuals admitted to committing insurance fraud, compared to 11% in 2021, which affects 7% of companies’ revenue. In this context, fighting fraud has become a priority for many insurance companies.
Let’s start by introducing LUKO
Luko is a French start-up specializing in insurance, founded in February 2018 and having raised 50 million euros in December 2020. It offers a fully digital insurance solution, positioning itself as a neo-insurer. Insurance fraud can take various forms: false claims, modification of invoices or quotes, and simulated accidents.
What is the objective of integrating Finovox?
Digitalization often correlates with fraud, and Luko is no exception. Therefore, as part of the fight against fraud, Finovox reached out to the renowned neo-insurer. Primarily used to verify invoices and quotes provided by its clients, the Finovox solution began its analysis in mid-2023.
How was Finovox integrated within Luko?
The Finovox software was deployed in two phases: a pilot phase with a limited scope, followed by an expansion to the global document scope.
Starting with Finovox Investigation (Finovox’s SaaS platform dedicated to manual investigation on documents), Luko’s anti-fraud teams familiarized themselves with the innovative technology and its daily usage in fraud investigations.
Following positive feedback regarding detection rates and fraud explainability, Luko and Finovox teams worked together for the deployment of Finovox Detection, the API solution for real-time automatic analysis of incoming documents. By the end of 2022, the integration was in production for a complete flow process: from API-based analysis upon receipt to decision-making after investigation using the platform.
What feedback would you give on Finovox?
“Since we started using the API, we’ve doubled our fraud savings. In the insurance world, we save the amount we would have had to pay if we hadn’t been able to prove the fraud. And this saving has doubled compared to the previous year. We’re even wondering if we should do a retroactive verification on older files.”
Marie-Colombe Pineau, Head of Fraud and Claims at Luko, provided highly positive feedback on using Finovox, highlighting that it’s the solution Luko was waiting for to effectively fight document fraud. Although no figures on Finovox’s success rates are available yet due to the recent collaboration, they will be provided once available. It’s important to note that fighting document fraud is not only a concern for Luko but also a legal obligation in France to combat money laundering and terrorism financing.