Location Intelligence and Analytics

Location Intelligence adding a powerful dimension to Fraud Management

Fraud represents a multi-billion dollar problem for the banking and insurance industry in Canada.  Location intelligence and analytics can add a powerful dimension to help manage fraud.

The growing complexity of fraud and well-executed rings have exposed the limitations of traditional detection systems, such as red flag indicators, investigations based on manual observations, internal audits findings, and software that shows anomalies based on a pre-defined set of business rules. In order to address fraud, organizations are becoming more proactive and sophisticated in their approach to data and information. In particular, data analytics and predictive modeling are allowing insurers to uncover complex, organized fraud activities using both structured and unstructured data.

Geospatial Tools

Although location intelligence and analytics represent a key piece of the fraud puzzle, traditionally they have been overlooked or vastly underutilized. Geospatial analytics tools provide access to a rich library of address-related content including name and phone number, demographics, firmographics, Canadian flood data, environmental risk information, land use information, earthquake boundaries and more, and can help unlock useful information and allow insurers to connect the dots on previously hidden fraud schemes.


Accurate geo-coding can also help verify the claim location.  There are several technology companies looking to improve field documentation and workflows for P&C insurers and claims professionals that use geo tagging and time stamping to determine the authenticity of information of property claims in an exact geographic coordinate. Was the claim in an area where a significant loss event, such as flooding, actually occurred? Geospatial analysis can be used to identify the exact area affected by a natural disaster, which helps determine the amount of risk to insured properties and weed out claims that are filed from areas not located in the affected zone.

This could involve, as an example, a spate of hail damage claims in a particular area. An insurance company can quickly pinpoint the exact geographic coordinates of the claim in real-time and overlay the storm’s path over that location. Was the claim location actually affected by the storm, or is it outside the boundaries (or marginal)? In large loss events, insurance companies often experience claims ‘leakage’ – when claims payouts are more than the terms set out in the policy. Precise use of location intelligence can help stop the leakage of opportunistic claims, or ‘soft fraud’.  Location intelligence can help with more than just catastrophic events. There may be, as an example, a series of small, but costly kitchen fires in a certain neighborhood. Is this just an anomaly or is it neighbors’ talking over the fence about how small fires can lead to full kitchen replacement costs? With location intelligence, this cluster can be flagged for follow up investigation.


With the inherent accuracy provided by geocoding and the analytic capabilities afforded from a vast number of inputs, location intelligence is a powerful tool for managing fraud and risk mitigation.   Organizations that build location intelligence into their business strategy will undoubtedly have a competitive advantage through better risk management, visual diagnostics related to geography, and on-demand access to a wealth of location- based information and assets.

To learn more, read our Mitigating Risk with Location Intelligence white paper.