On a daily basis, p&c insurance providers mine through vast repositories of data to validate and process thousands of claims.

Yet, billions of dollars are lost annually because of fraudulent insurance claims. In order to provide quality services to their customers, providers need to recover this lost money. Preventing fraud requires mining and analyzing massive volumes of data to gain better insights and, in turn, improve decision-making ability.

According to a recent survey by FICO1 and Property Casualty Insurers Association of America (PCI), 45 percent of insurers estimated that insurance fraud costs represent 5 to 10 percent of their claims volume, while 32 percent said the ratio is as high as 20 percent. More than half (54 percent) of insurers expect to see an increase in the cost of fraud.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.