Fighting Fraud, Taking Names : Combating Insurance Fraud with Advanced Analytics

Cognizant FIGHTING FRAUD, TAKING NAMES Combating Insurance Fraud with Advanced Analytics Property and casualty insurance fraud is a serious white-collar crime, and costs insurers and policyholders billions each year. Learn how advanced analytics is taking a bite out of even the most sophisticated professional and opportunistic claim fraud. INSURANCE FRAUD: A Criminal Matter 10% of all But only property/casualty 20% of these insurance claims fraudulent claims are are fraudulent detected or denied INSURANCE FRAUD is second only to TAX EVASION for the most costly white-collar crime in the U.S.2 $33 BILLION 116,171 UP 16% Annual cost of property/casualty insurance fraud Questionable claims in 2012 from 100,201 in 20113 INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE INSURANCE CLAIH FORM CLAIM FORM CLAIN FORM CLAIM FORM CLAIM FORM CLAIM FORM FRAUD DRIVES UP INSURANCE Costs for Everyone Costs of insurance fraud to insurers:4 Growing costs of insurance fraud to policyholders:6 $80 Billion $75 Billion 45% $69 Billion of insurers estimated $64 Billion that insurance fraud $61 Billion costs represent 5-10% of their claims volume 32% said the ratio is as high as 20% 2011 2012 2013(e) 2014(e) 2015(e) *(e) = Estimated ABOUT 1 IN 2 INSURERS $200-$300: ANNUAL INCREASE lose 11-30 cents per premium in premiums dollar to soft (opportunistic) for the average fraud alone5 U.S. family? $4 ADVANCED ANALYTICS TO THE RESCUE ANALYTICS AS A SERVICE (AaaS) improves fraud detection through: Predictive Analysis Social Media Analysis Text Mining Link and Geospatial Analysis LOOKING FORWARD %23 TO EXPERIENCE THE FULL POTENTIAL OF ANALYTICS, INSURERS SHOULD: Develop enterprise-wide Identify key areas for data architecture deploying analytics Design a comprehensive Develop a fact-based strategy for adoption decision-making culture and implementation of focused on achieving analytics, including specific goals information technology Formulate customized Continuously innovate and Enter into relationships with strategies to capitalize renew analytics implementation partners capable of providing on unique data Aaas to advance competitive advantage To better understand how to combat P&C claims fraud, download our full report at http://cogniz.at/CombatPandCFraud Cognizant The data was collected and analyzed by Cognizant Research Center Sources: 1. http://www.propertycasualty360.com/2011/04/04/predictive-analytics-a powerful-weapon-in-fight-ag 2. http://nysaif.org/nicb-insurance-fraud-understanding-the-basics/ 3. http://www.ii.org/issues_updates/insurance-fraud.html 4. http://www.fico.com/en/about-us/newsroom/news-releases/many-us-insurers-say-impact-of-fraud-greater-than-previously-estimated-according-to-new-fico-pci-insurance-fraud-survey/ 5. http://www.insurancefraud.org/statistics.htm 6. http://www.propertycasualty 360.com/2013/08/23/building-better-mousetraps-technology-imperatives, based on the study conducted by Aite Group. 7. http://www.namic.org/newsreleases04/040317nr1.asp **********.*