Insurance fraud poses a major threat to both insurers as well as policyholders. According to the Coalition Against Insurance Fraud (CAIF), in the Property & Casualty (P&C) sector alone, fraud related losses are estimated to be $33 billion annually.
As per the survey conducted by Cognizant, only 20% of all the property and casualty insurance fraudulent claims are detected or denied. Significant financial cost created by insurance fraud drives up costs for policyholders in the form of increased premiums.
To combat fraud, it is imperative for insurance companies to embrace data analytics. Analytics is now playing a greater role in helping insurers identify fraudulent claims; through predictive analysis, social media analysis, text mining and link & geospatial analysis.
Analytical tools can detect patterns and anomalies in a large database, & the need for investigating a claim further. To describe the full potential of analytics, insurance companies should develop enterprise-wide data architecture, continuously innovate and renew analytics implementation and develop relationships with partners capable of providing advanced analytics service.
Please follow this link to see the infographic – Combating Insurance Fraud with Advanced Analytics
Disclaimer: This infographic has been designed by Cognizant.