$4 Trillion

 the total annual premiums collected by the insurance industry

10% to 30%

of all property & casualty claims are fraudulent

> $1,000

the annual cost of insurance fraud to the average American.

Insurance

Property & Casualty, Life and Health

Digitization in Insurance

The Challenge

The global insurance industry represents $4 trillion in premium volume.  Insurance companies conservatively lose over $80 billion per year in insurance fraud, a cost that inevitably gets passed along to individuals and businesses in the form of higher premiums.  Estimates vary, but generally, a staggering 10%-30% of all claims are believed to be fraudulent.

The Solution

In personal lines especially, Fraud.net can help insurance companies improve fraud and loss prevention rates while simultaneously boosting efficiency.  Machine learning models are expertly engineered with the nuances of your industry already built in. Adaptive scoring performs a detailed analysis beyond human and traditional modeling capabilities in order to deliver a single risk score. The models then learn as new outcomes and feedback are received.

Recommended Products & Solutions

AI-powered claims scoring and management

Retail clients – especially the younger, digitally-savvy segments – are demanding greater convenience from their insurance providers and insuretech facilitators.  To keep pace, insurance companies must continue to digitize, then apply all the benefits of machine learning and artificial intelligence throughout their risk management, pricing and claims processes and workflows.

In particular, removing most fraud from the claims process can save insurers billions of dollars per year.  The greatest opportunities for loss reduction and increases in profitability will come from addressing:

  • Healthcare fraud, which includes individuals falsely claiming or overstating the severity of injuries, costs over $54 billion per year,
  • Auto insurance fraud, which includes staging accidents, and premium leakage, which involves missing or erroneous underwriting information, cost Americans over $35 billion per year. 
  • Property Casualty fraud, which ranges from arson to claims of lost high-value personal items, equals about $34 billion each year.

Other areas, such as workers compensation, benefits, life insurance and tax refund fraud, also offer insurers, employers and government agencies enormous opportunities to reduce costs, streamline their operations, and boost profitability.

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unified-data-for insurance

The Power of Unified, Enriched Data

84 percent of insurance organizations state that fraud cases which they do investigate span multiple industries. Therefore, a cross-industry, cross-functional perspective provides significantly improved visibility and effectiveness in catching and stopping fraud.  And because the methods of attack vary, often combining identity theft (49 percent), hacking (45 percent), employee-agent (37 percent) and claims (34 percent) fraud, only a unified data, analytics and artificial intelligence platform like Fraud.net’s can identify these hard-to-detect forms of fraud.  Ask us about the 600+ distinct fraud attack methods that we track and stop.

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Unlock Extraordinary Opportunities

Deep in the terabytes of data your organization produces every day, there are hidden, potentially game-changing, insights.

Unifying data and extracting intelligence is now possible using modern technology. Deep dive into your business with more granularity than you thought possible. Innovations will become clearer and strategies will become more obvious.

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