NICB 2018 Annual Report
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2018 ANNUAL REPORT TRANSFORMERS CONTENTS 2 PRESIDENT’S LETTER: STARTING WITH A SHARED VISION 4 DATA ANALYTICS: TRANSFORMING INFORMATION INTO ACTION 6 INVESTIGATIONS: GOING OUT ON A LIMB 8 LEARNING & DEVELOPMENT: THE SURFACE IS JUST THE BEGINNING 10 GOVERNMENT AFFAIRS: RESULTS AT EVERY LEVEL 12 PUBLIC AWARENESS: WHEN BEING #1 ISN’T CAUSE FOR CELEBRATION 14 MEMBERSHIP: THE WAY WE SEE THINGS 15 MEMBERSHIP LISTINGS 21 FINANCIAL STATEMENTS 23 BOARD OF GOVERNORS 24 ADVISORS TO THE BOARD 25 NICB SENIOR LEADERSHIP TEAM PRESIDENT’S LETTER STARTING WITH A SHARED VISION ome transformations are Much of what you’ll read and see in our easily observable, while 2018 report has an underlying tone Sothers run beneath the of technology. Obviously, this is the surface. Either way, they require foundation of our Data Analytics and expertise, passion and a long-term Information Technology initiatives. outlook. But most importantly, But increasingly, we’re applying cutting- they depend upon a team of trans- edge technologies throughout the formers who can proactively create entire organization. The NICB’s latest and drive change. data-sharing agreements, investigational advancements with the Geospatial Never satisfied with doing business Intelligence Center, digitized Learning as usual, the transformers at the and Development programs, and new National Insurance Crime Bureau algorithms that can detect organized (NICB) looked deeply at our oper- fraud rings are just a few examples. ations and processes in 2018, and implemented many advancements Notwithstanding its power and that continue to transform how we promise, we know technology is partner with members, strategic not the golden ticket to solving partners, global law enforcement insurance crime. We also must agencies and the American public to continually build and challenge a fight fraud and vehicle theft. corps of professionals selflessly 2 committed to delivering fraud and For more than a century, we’ve theft solutions. You’ll see plenty of never stopped transforming how the examples throughout this annual world views insurance crime, as well report of how we combine human as how the insurance industry, law capital with technology to more enforcement agencies, prosecutors effectively stay ahead of criminals. and others fight it. The NICB is proud and honored to share your At the NICB, we’re transformers. perspective that by working together, Always have and always will be. We’re we can stop this crime and create small and nimble enough to make fast, better, safer communities. collaborative decisions, yet our scope Photo: NICB President and Chief Executive Officer and expertise are broad enough to Joe Wehrle addresses the International Association touch every part of the United States, of Special Investigation Units 2018 Seminar & Expo and increasingly, the world. on Insurance Fraud. Indeed, transformation starts with a shared vision. From there, just about anything is possible, such as the overall 13:1 return on investment Joseph H. Wehrle, Jr. we delivered to members in 2018. President and Chief Executive Officer 3 DATA ANALYTICS TRANSFORMING INFORMATION INTO ACTION umbers and words are and MedAWA R E ® alerts, delivered incredibly valuable inputs 1,300 fraud tips to members, and created Nwhen fighting fraud. But more than 200 analytical packages without applying insight and effort, to support highly focused NICB they’re simply information. investigations. And through our network analysis techniques, the team identified That’s where NICB Data Analytics more than 50 potential organized comes into play. With our 40 team groups for further investigation. members and expansive range of partnerships and technologies, we’re Recognizing that NICB members transforming information into have a need for fraud-fighting speed, action by helping members make Data Analytics created an interactive smarter, faster decisions to stop questionable claims dashboard in potentially fraudulent claims. 2018 to reshape static data into dynamic answers. Built from member Our strategic analysts collate, augment suggestions, this tool allows claims and assess member company and and investigations professionals to NICB third-party data, with the more quickly and efficiently access, resulting leads then identifying and review and assess their own referrals, supporting medical, commercial as well as regulate compliance, and vehicle fraud cases. In 2018, we identify potential training gaps and published 3,200-plus ForeWAR N SM deploy investigative resources. 4 The past year also saw further You can see how Data Analytics advancements in our vehicle lead support helps us create the annual tracking and related data services. NICB Hot Spots vehicle theft report We collected more vehicle impound in the video link on the previous page. data in 2018 than we have in the previous 10 years…more than 2.1 Finally, to help convert chaos into million records in total. This clarity, our Data Analytics team information is invaluable in helping worked around the clock with NICB our membership quickly locate Field Operations, law enforcement and recover their assets from agencies and emergency management impound lots nationwide. officials in the wake of several natural disasters in 2018. We provided maps And to support Associate members, and dashboards to onsite emergency we introduced the online vINFOSM operations centers, and processed search service through which they near real-time Catastrophe Alerts that can run vehicle identification delivered vital situation updates and numbers (VINs) against NICB theft contact information to our members. and impound data rather than having to call our investigative assistants Photo: Kwhamec Rojas and Stephanie Fillion for this information. Available are among the 40 NICB Data Analytics team on a secure website, Associate members who create solutions that transform members can access vINFO 24/7 information into action. from their desktop, laptop and 2018 KEY STATISTICS mobile computing devices, thus ForeCASTSM Reports Published transforming information access 43 from “soon” into “now.” MedAWARE Alerts Published 787 ForeWARN Alerts Published 2,480 Questionable Claim Submissions 130,673 Cases Supported by Tactical Analysis Unit 56 Hotline Calls/Webtips Processed 6,659 Data Analytics Investigative Leads Sent 6,126 to NICB Field Operations Tactical Products Produced in Support 222 of Investigations 5 INVESTIGATIONS GOING OUT ON A LIMB ICB special agents have particularly useful in uncovering never hesitated going out potential fraud following Hurricanes Non a limb to do their jobs. Florence and Michael (the two major Not everyone is comfortable in this storms of the season) and the position…but we are. For it’s here California wildfires, which were the that we best stretch our capabilities, worst in state history. During these challenge and disrupt norms, and catastrophes, our agents served as deliver leading-edge investigative onsite experts at command posts to solutions that defy common thinking. identify potential fraud, and facilitate first responder and GIC customer The Geospatial Intelligence Center access to this vital imagery. (GIC) is a great example. Introduced in 2017, the GIC uses high-resolution Learn more information about the aerial photography to enhance fraud GIC’s transformational capabilities prevention efforts, claims manage- in this section’s video. ment and payment processes. Our GIC partners operate more than 100 aircraft Last year, our vehicle investigative equipped with image-gathering experts worked with many strategic technology that can transform the partners and automobile manufacturers speed at which insurers make claims to devise and improve upon cutting- decisions and policyholder payments, edge technologies that can transport especially following natural disasters. vehicle theft and fraud investigations into the fast lane. Among other areas, In 2018, a half dozen NICB members our efforts focused on vehicle key signed on to capitalize on the GIC’s readers that can help prevent fraud, one-of-a-kind services, which were tire pressure management sensors 6 that can cross-reference a vehicle’s train local law enforcement agents in wheels and tires to its VIN to help how to identify stolen U.S. vehicles stop wheel and tire theft, and a new and support transnational crime technology that can forensically prevention efforts led by the NICB. examine a car’s infotainment system to reinforce theft investigations. Meanwhile, our eight medical fraud task forces continued their And for the 106th year in a row, investigations of large-scale rings our investigative and operational and organized criminal conspiracies relationships with law enforcement that seek to victimize you and your agencies paid dividends for NICB policyholders. Our collaborative members domestically and inter- approaches with members, law nationally. For example, knowing enforcement agents and prosecutors that insurance crime isn’t limited by included dialogue and case meetings, geographic borders, we worked with as well as investigations and analytics the International Criminal Police expertise to identify significant ring Organization, more commonly known activity and help pursue criminal as Interpol, in West Africa in 2018 to and civil prosecutions. Photo: GIC aerial photography supported faster claims payments that helped policyholders get on the road to recovery following 2018’s California wildfires. 2018 KEY STATISTICS Member-Reported Loss Mitigation $46,880,975 Restitution Ordered $37,041,117 NICB