With $25 billion in fraud reported by the U.S. property and casualty insurance industry last year, it cant be said the industry is winning the battle against fraud. The claims department and the special investigation unit are on the frontlines in this battle, but some insurers believe it is time to bring in the heavy artillerythe IT department.

CIOs are starting to get more involved, says Ralph Carlile, one CIO moving in that direction for Grange Insurance Group in Seattle. There are systems implications when you start bringing in a third-party system that will help detect fraudulent areas. Those systems have to be purchased and integrated into everything else.

Bill Kenney, CIO at Colony Insurance Group in Virginia, says he is not overtly involved in fighting fraud for the E&S insurer, but his IT department works closely with other departments on various projects.

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