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IFFCO-Tokio built its own fraud detection models on H2O AI Cloud, saving more than $1M annually and flagging 100x more fraudulent claims each month.
IFFCO-Tokio handles over 2,000 motor claims a day across 12 service centers with roughly 100 claim officers, who lack the time to examine every case for fraud. Fraud ranges from inflated repair costs to staged accidents and fictitious injury claims, leaving the insurer exposed to steady financial losses.
Claim officers do not have the time to thoroughly examine every case for fraud, leaving the insurer vulnerable to ongoing financial losses. IFFCO-Tokio needed a way to surface the highest-risk claims automatically so its team could focus where it mattered.
IFFCO-Tokio deployed H2O AI Cloud on-premise, using automated machine learning with pre-built algorithms to detect fraudulent activity, suspicious links, and behavioral patterns from historical claims data. On-premise deployment was essential for data privacy. A Kaggle Grandmaster from H2O.ai guided the three-person team remotely, and the fraud model scores each claim between zero and one, with higher scores signaling greater fraud probability.
After the motor insurance model went live in July 2021, the team built a second model for health insurance claims, combining rules and third-party data to detect medically unnecessary services and overcharging.
The fraud use case saves IFFCO-Tokio more than $1M USD, roughly 70M INR, every year. The models flag 100x more confirmed fraudulent claims each month than before, letting officers concentrate on high-probability cases while genuine claims move faster.
Within one month, customer retention rose 3 percent. The success became a foundation for wider adoption, with the team planning to extend AI and machine learning across more of the business.
“H2O AI Cloud is a platform that my team can learn by themselves. I find the platform to be very friendly for people who are not data scientists or have little knowledge of data science.”Seema GaurChief Information Officer and Head of IT, IFFCO-Tokio
IFFCO-Tokio General Insurance was incorporated in 2000 as a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO), which holds 51 percent, and Japan's Tokio Marine Group, which holds 49 percent. The company provides general insurance across motor, health, travel, home, and business lines, along with specialty products such as cyber, credit, and fine arts coverage.
IFFCO-Tokio operates across rural areas and Tier B and C cities, pioneering single-person Bima Kendras to widen insurance access in underserved communities. More at https://www.iffcotokio.co.in/about-us/our-company/company-profile