Introduction
Industry-level data sharing is a foundational capability in the fight against organised insurance fraud. By allowing insurers to identify when the same individuals, vehicles, or patterns appear across multiple companies, shared data exposes fraud that would otherwise remain invisible to any single insurer.
Australia’s industry fraud data sharing arrangements have undergone significant change in recent years and are continuing to evolve as the Insurance Council of Australia develops new capabilities for the industry.
What Industry Fraud Data Sharing Means (Plain English)
Industry fraud data sharing is the practice of allowing insurers to exchange information about suspicious or confirmed fraud activity, so that fraudsters cannot simply move between insurers committing the same fraud repeatedly. Without it, each insurer sees only their own fragment of the picture.
Data sharing typically covers:
- Confirmed fraud cases referred by member insurers
- Suspicious activity warranting cross-industry awareness
- Historical claims information used to identify patterns
- Intelligence supporting law enforcement investigations
The Historical Context: Insurance Reference Services (IRS)
From 1991 until early 2024, the Insurance Reference Services (IRS) operated as Australia’s primary industry-level claims database. IRS allowed insurers to share motor, home, and travel claims information for the purposes of supporting claims management, claims investigation, loss assessment, fraud detection, and risk underwriting.¹
At its peak, the IRS database held more than 22 million de-duplicated claims, with approximately 600,000 claims updates received monthly from member insurers. However, as participation declined over the years, the remaining IRS members made the decision to wind up the operation as the most appropriate course of action.¹,⁴
The Current Industry Framework
Following the wind-up of the IRS, industry fraud data sharing in Australia is currently coordinated primarily through the Insurance Fraud Bureau of Australia (IFBA), a working element of the Insurance Council of Australia. The IFBA’s mandate explicitly includes information collection, sharing, and analysis of insurance fraud information that facilitates insurer action against fraud.³
The IFBA also coordinates information exchange between insurers where insurance fraud or a criminal act is reasonably believed to have occurred, and supports law enforcement investigations where insurance fraud may be a factor.³
The Emerging Industry-Wide Solution
In 2024, the ICA announced its intention to develop an industry-wide fraud detection and prevention solution. According to ICA statements, this will involve the establishment of a dedicated entity focused on the detection of systemic and organised insurance fraud across the Australian landscape.²,⁴
The ICA has indicated that the new capability will draw on overseas experience — including the United Kingdom’s Insurance Fraud Register operated by the UK Insurance Fraud Bureau — to inform the design. The objective is a modern, sophisticated, industry-wide fraud detection service appropriate for the growing risk environment.
Why Data Sharing Matters
Organised fraud relies on the limited view of any single insurer. The same network may submit claims across multiple insurers using slightly different identities, vehicles, or addresses. Without industry-level data sharing:
- Repeat fraud is much harder to identify
- Investigations rely on incomplete information
- Networks remain invisible until significant losses have accumulated
- Honest customers bear the cost through higher premiums
Privacy and Fairness Considerations
Industry data sharing operates within Australia’s privacy framework, including the Privacy Act 1988 and the Australian Privacy Principles. Any information sharing must have a clear legal basis, support a legitimate purpose, and respect the rights of individuals.⁵
This is particularly important given the consequences for individuals where they are identified within fraud data. Records must be based on sufficient evidence, processes must allow for challenge and correction, and access must be controlled appropriately.
Role of Analytics and Entity Resolution
Data sharing is only as valuable as the quality of the data being shared and the ability to resolve entities accurately across insurers. Strong entity resolution — the ability to identify when different records refer to the same real-world individual or business — is essential to making industry data work.
Where insurers invest in entity resolution and detection analytics at their own level, the value of industry data sharing increases substantially.
Related Topics
Insurance Fraud Bureau of Australia (IFBA)
Organised fraud in insurance
Application fraud
Entity resolution and risk visibility
Sources & further reading
¹ Insurance Reference Services Limited (legacy) — insurancereferenceservices.com.au
² Insurance Council of Australia — statements on IRS wind-up and new fraud detection initiative
³ Insurance Fraud Bureau of Australia — insurancecouncil.com.au/consumers/insurance-fraud
⁴ Insurance News (insuranceNEWS.com.au) — March 2024 reporting on the industry-wide solution
⁵ Privacy Act 1988 (Cth) and Australian Privacy Principles
