Organized fraud is extremely difficult to detect, particularly because schemes have become increasingly complex. According to the Insurance Information Institute (I.I.I.), the National Insurance Crime Bureau (NICB) released data showing that questionable claims referrals related to organized insurance fraud grew 47 percent from 2008 to 2011, reaching 3,146 questionable claims referrals in 2011. The NICB [...]
predictive analytics
In a previous post, I wrote about how an effective analytics strategy must first start with good quality data — and lots of it. While good data provides the foundation on which to build, managing that data provides the framework for success. The first step in developing an effective data management process is to build [...]
I was just reading a recent article on the Property Casualty 360 website about how insurers use predicative analytics to improve decision making and agent response time. The article explains how predictive analytics can help insurers manage and distribute risk by segmenting high-risk and low-risk policies. I agree that predicative analytics is exactly what insurance [...]
Over the last decade or so, the role of predictive analytics in the property/casualty insurance industry has evolved into a critical component for success. That trend is only going to increase in the years ahead, as analytics becomes a necessity in marketing, operations, cash flow management, risk assessment, pricing, and claims. At the same time, [...]
Claims fraud may occur in only 2 percent of claims, according to some estimates, but early detection — and prevention — are growing in importance. Why? According to a new study by Celent, as reported in Insurance Networking News, property/casualty insurers have faced increasing challenges in generating underwriting profits. Those challenges result in more pressure [...]
Questionable claims from organized fraud have surged over the past few years. Despite an 11 percent dip from 2010 to 2011, overall activity rose 47 percent from 2008 to 2011, according to the Insurance Information Institute (I.I.I) citing National Insurance Crime Bureau (NICB) statistics. And the NICB expects another spike of close to 50 percent [...]
