The insurance industry is witnessing a consistent annual growth but companies in this industry are struggling when it comes to insurance penetration among consumers. Globally, insurance fraud has become a major concern for insurance companies. To tackle these challenges insurance service providers are investing huge resources and manpower in insurance fraud detection.
Data analytics solutions can help insurance companies to reduce exposure to fraud, and credit losses by the timely identification of all insurance risks.
Companies in the insurance industry are under tremendous pressure to ensure adherence to claims decisions while striking the right balance under regulatory pressures, growth of digital channels, and proliferating competition. This is the reason they are turning their attention towards big data and analytics solutions to identify misrepresentation, detect insurance fraud, and prevent identity theft.
Talk to our analytics experts to know how our data analytics and visualization solutions can empower you to identify and tackle fraudulent activities.
Role of Data Analytics in Insurance Fraud Detection
Insurance companies can leverage big data and analytics to analyze their strengths and weaknesses first, to, detect insurance fraud. This can help them to identify gaps in their existing fraud detection framework. As a result, they can improve their insurance fraud detection techniques and modify strategies.
Data analytics helps in identifying new trends and patterns in the process of insurance claims as they emerge. This can help insurance companies to seamlessly update their models and rules in the monitoring system to prevent insurance fraud. With this fundamental approach to insurance fraud detection, insurance companies can continuously monitor the billing and patterns off-line as well to identify abnormal insurance claims.
Quantzig’s analytics solutions can help companies in better management of insurance claims, underwriting, actuarial, pricing and marketing functions, and insurance fraud detection. Request a FREE proposal to gain in-depth insights into our portfolio of analytics solutions.
Big data and analytics play a crucial role when it comes to data integration. It can help insurance companies in building effective insurance fraud detection capabilities by combining data from disparate sources. Also, data analytics helps companies in the insurance industry to integrate internal data with third-party data. By leveraging big data analytics insurance companies can integrate data sources with derogatory attributes such as bankruptcies data, criminal records, and foreclosures into a model and can address the transient behavior. Furthermore, big data analytics can help in uncovering anomalies in insurance billing to identify insurance fraud.