An insurance fraud tool that has been used by 15 of the top 20 insurers in the US since 1994 may have application in the Australian market.

ClaimSearch, developed by Insurance Services Office (ISO) of New York, stores tens of millions of reports on individual insurance claims. It is a comprehensive system for improving claims processing and fighting fraud.

US insurers, law enforcement agencies and government anti-fraud bureaus use the ISO tool. ISO is a major shareholder in Sydney-based NetMap Analytics, which is keen to bring the technology to Australia.

NetMap Analytics chief scientist John Galloway says a few small projects have been conducted with Australian insurers. The tool searches databanks of names, addresses, dates, insurance claim details and other data looking for unusual patterns and unexpected connections.

Mr Galloway says it goes beyond conventional methods by looking for links that aren’t obvious, then an analyst decides whether the pattern warrants further investigation as possible fraud.

The Insurance Council of Australia says estimated insurance fraud losses are as high as $1 billion annually.