Claims Analytics to Latch the Frauds

One major advantage of claims analytics in Auto Insurance Industry is that the payer cannot fall prey to fraudulent claims, which earlier was an enormous task to detect. Talking about the statistical numbers Auto Insurers lost $16 billion dollars due to fake auto claims that amounts to 10% of the overall insurance industry that faced a loss of $162 billion in 2015. While insurance fraud is not a new thing, but the severity of the issue is on the rise and offenders are looking for more sophisticated ways to create a fraud.

So, getting towards our moot question here, what is the role of Analytics in detecting fraudulent claims?

Insurance companies today have aligned themselves with highly sophisticated and user friendly analytical tools to put an end to fraudulent claims. By creating predicative models taking into account both historical and real time data on wages, attorney costs, medical claims, demographics, climate information, customer care voice recordings, and Insurance payers are in a superior position to extricate suspected fake auto claims in the early stages.

For instance, a personal injury claim could conceivably incorporate fake medical claim or a staged accident. Organizations have seen an expansion in refined wrongdoing to execute auto insurance claims. These scamsters may have similar methods of operation that are enacted in various region of United States or using different aliases for the claimants.

Claims analytics can quickly look for patters in recorded claims and identify similarities or raise questions in another case before the procedure gets too far along.

Analytics has the potential to deliver Huge Benefits

Risk and fraud specialists at insurance agencies, alongside actuarial and underwriting administrators and insurance business managers, all see claims analytics as having the capacity to deliver huge benefit by helping to anticipate and decrease attempted fraud. The objective is to recognize false claims at the first notification of loss — at the very first point where you require an underwriter. Underwriter are required during the time a product or insurance quotes are prepared, never after the policy is sold. They assess risk and decide at the time of premium collection what our charges should be.