Emerging Technologies Fight Claims Fraud

CLAIMS FRAUD: Claims fraud costs the insurance industry billions of dollars each year. In the P&C segment, with the 2008 hurricane season under way, the likelihood of skyrocketing claims volume raises the risk of claim-related fraud. While insurers in all lines of business employ some form of rules-based systems and analytics to detect and prevent fraud, these solutions are only as good as the underlying data, and perpetrators seemingly stay a step ahead of current technologies. Fortunately, emerging technologies, such as predictive modeling, are empowering special investigations units (SIUs) to be more proactive rather than reactive in the fight against fraud. How can carriers leverage these technologies to eliminate fraud while increasing capacity to process legitimate claims?