LONDON--(BUSINESS WIRE)--In their recent blog titled ‘Insurance Fraud Detection – Data Analytics to The Rescue,’ global analytics and advisory firm Quantzig evaluates some of the ways insurers are using big data to check fraudulency and retain their customers.
According to industry estimates, as of August 2016 property/casualty insurance fraud alone accounted for an estimated $32 billion a year. Claims, premiums, and employee-related frauds are the three areas with a high rate of fraud cases and because of these insurance frauds, premium costs for policyholders as well as the overall cost for the insurer goes up. This has sparked an increased need for a proper tool to counter such incidences.
For more insights, get in touch with Quantzig’s analytics solutions experts
Quantzig notes that “using analytical technology is one of the most potent tools which can lead to sophisticated scams being busted. Tools like claims scoring and predictive modeling help detect fraud before the payment is even made.”
Data analytics and data mining can be used for consolidating the claims database which will result in easier tracking of false cases. Analytics also helps the industry to gain transparency in its operations, *improving its reputation. In the long run, both the insurer and the insured are benefited from the improvement in the quality of insurance products.
Companies have already started implementing fraud detection analytics to reduce time and resources spent on false alarms, while catching more fraudulent claims. One leading global insurance company recently saved $25 million by implementing fraudulent analytics models, identifying 25% more fraud cases and reducing false alarms by 50%
More information on how analytics is being adopted in the insurance industry and how leading insurance companies are countering fraudulency and increasing their sales, can be found using Quantzig’s resources. These resources are compiled from Quantzig’s team of over 500 analysts with industry expertise.
Quantzig is a global analytics and advisory firm with offices in the US, UK, Canada, China, and India. For more than 12 years, we have assisted our clients across the globe with end-to-end data modeling capabilities to leverage analytics for prudent decision making. Today, our firm consists of 120+ clients, including 45 Fortune 500 companies. For more information on all of Quantzig’s services and the solutions they have provided to Fortune 500 clients across all industries, please contact us.