Emerging Project Lessons
Using RFID technology enabled IFFCO-Tokio to reduce fraud through more accurate identification of animal and changing business processes for livestock insurance.The claims for livestock insurance are often high due to the prevalence of moral hazard and fraud, reducing the availability of affordable coverage. IFFCO-Tokio is testing a model to reduce fraud by using an identification device, based on RFID technology. The lower claims ratio (35 per cent), which is more than five times less than with traditional ear tags, suggests that the new technology is working. Perhaps even more important than the technology is the change in process that IFFCO-Tokio initiated because of the technology. IFFCO-Tokio now oversees the tagging of each new animal, reducing the possibility of claims being filed for uninsured animals.
Date of last Learning Journey update: September 2012