Society warns insurers about voice software

The Law Society of Ireland has said it is concerned that the possible introduction of voice stress analysis software, which aims…

The Law Society of Ireland has said it is concerned that the possible introduction of voice stress analysis software, which aims to pinpoint insurance customers making fraudulent claims, might also discourage people with legitimate claims from coming forward.

The technique, which is being considered by some insurance companies in the Republic, involves monitoring the recorded telephone conversations of people making claims.

By detecting changes in speech patterns, it claims to enable insurance companies to identify whether these claims might be fraudulent.

The developer of the software, UK-based firm Digilog, claims that, when used in conjunction with other techniques, it can lead to a significant increase in the number of claims that are modified or withdrawn.

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However, Mr Ken Murphy, director general of the Law Society, said the effectiveness of such a system was open to question.

"The Law Society unreservedly condemns fraudulent claimants," he said. "If this measure would be both effective and legal - and we would have some doubts on both fronts - then we would support it.

"However, apart from ensuring that determined fraudulent claimants would pursue their claims in writing rather than by telephone, we would have a concern that the announcement of this measure has as its true objective that of deterring legitimate claimants from pursuing their rights."

In response, a spokesman for the Irish Insurance Federation, which runs a confidential telephone line encouraging people to report suspected insurance fraud, says that its research shows there is a "tremendous appetite" among members of the public for anti-fraud measures.

"Any legal initiative is to be welcomed," he said. "I don't understand how a legitimate claimant will be deterred, if anything, it will in fact determine who the legitimate claimants are."

A spokesman for Axa Insurance, which is one of the Republic's largest providers of motor insurance, yesterday confirmed it was considering Digilog's proposal as well as other techniques for fraud investigation.

Other insurance companies, while not actively considering introducing the technique, confirmed that they were not ruling it out either.

However, Hibernian Insurance, another leading insurance provider in the State, said it had no plans to introduce the software.

"If we believe a claim is fraudulent, there are other ways to pursue a claim," a spokeswoman for the company said. "We assume our customers are trustworthy and honest, and that when they go to court they will not perjure themselves."