There’s no question: insurers see fraud detection as mission critical to improving their bottom line (see Could fraud control be the answer to improving insurers’ profitability?). Thanks to a number of proven approaches (see Four strategies to help fight insurance fraud), insurers can bridge the gap between their fraud control aspirations and their actions, and fraud analytics is pushing insurers in the right direction.
Fraud analytics: Saving insurers time and money
Fraud analytics is a critical component of an effective fraud management strategy and can help insurers generate important cost reductions—but that’s not all. Insurers seeking to combat fraud with analytics can also benefit from:
- Achieving greater statistical certainty in cases of suspected fraud.
- Reducing the manual effort needed in analyzing data.
- Reducing the number of fraudulent claims managed by optimizing the validation of the claims process.
- Increasing business productivity as data analysis is now at the heart of fraud detection.
It’s clear, advanced analytics can help insurers reduce loss costs and improve their performance. In fact, a recent Accenture Insurance Equity Analyst Survey finds that 79 percent of respondents believe that over the next three years, data analytics will be one of the most important value drivers for insurers.
The fight against fraud is an unavoidable issue for many insurers, especially against the backdrop of growing demands on capital and profitability. Insurers need to take steps now to not only detect fraud, but significantly reduce its impact on the business.
To learn more, download: How to effectively fight insurance fraud.