Vehicle-Related Risk Level in the Case of Claims on the Motor Insurance Market in Hungary

Insurance fraud, characterized by false or exaggerated claims, is a major economic crime worldwide, undermining trust between insurance companies and their customers. Detecting these cases is a priority issue nowadays. This paper presents a fuzzy inference system for the early identification of suspicious claims in the compulsory motor liability insurance market. The study focuses exclusively on cases involving two privately owned passenger cars where no personal injury, but only property damage, occurred. A Mamdani-type inference system was created, using simple independent input parameters: the value (in EUR) and the age of the vehicle (in years) and the payment period of the insurance contract. The last parameter was introduced as a qualitative factor. These were linked to the risk level resulting from the characteristics of the vehicles involved in the incident. For this purpose, real insurance data were used.