Against the backdrop of low interest rates, uncertainty about profitability and pressure on pricing, insurers are focusing on ways to control costs and improve risk management. Fraud control is an area with strong potential for increasing insurers’ bottom line.
Accenture recently surveyed insurance executives in Europe and Latin America involved in the P&C claims function. I’ll share some of the most salient findings here today, and in the coming weeks, I’ll look at how insurers can optimize fraud detection.
Fraud prevention tops the list of priorities for insurers
When it comes to fraud in insurance, Accenture’s survey finds:
- Seven in 10 respondents have seen an increase in fraudulent claims over the past three years.
- The average increase in fraudulent claims over this period is 10 percent, although the increase varies significantly across countries and carriers.
- Better fraud detection capabilities could help shave five percent off insurers’ claims costs.
The chart below illustrates which initiatives insurers are implementing to improve fraud detection, and which ones they would like to initiate over the next three years:
While insurers rate fraud prevention as a top priority over the next few years, as the above chart demonstrates, they’re slow to implement initiatives considered to be the most significant in improving fraud detection.
Join me next week when I look at how insurers can improve their detection and prevention capabilities without adversely affecting the processing of legitimate claims.
To learn more, download: How to effectively fight insurance fraud.