$30 billion is lost due to insurance fraud annually. The time has come to recover some of that lost opportunity.
Recently Deloitte released a new study on Fraud Management in the Insurance Industry. According to Insurance Network News, Deloitte suggests “Developing a fraud management strategy, aligning the operating model, improving information quality and leveraging advanced technology tools and analytics can modernize the fraud-fighting processes.”
Deloitte’s study states that the Insurance Research Council-Insurance Services Office has noted that almost half of P&C companies report losing between 11 and 30 cents or more of each premium dollar to soft fraud alone.
In the UK, according to The Post online, “The past 12 months set a high watermark for fraud, and annual losses across the UK are now estimated at £70bn. Of this, £3.5bn is in financial services, and insurance fraud tops £2.1bn, marking a 23% year-on-year rise.
According to Nick Mothershaw, Director of identity fraud at Experian, “Access to fraud databases and fast, efficient identity validation are critical. By plugging into large-scale data sets, insurers will be able to take that challenge right to the fraudsters' doorsteps, safeguard their customers and protect profits by shoring up areas of exposure and risk in quote manipulation, ghost broking and third-party fraud.”
Fraud management solutions are designed to manage risk, fraud, and compliance across the enterprise. Your knowledge workers tasked with fighting this fraud require accurate information, in the right place, at the right time. Fraud management applications built on a cloud platform (PaaS) are flexible and allow your knowledge team to create a system that meets their specific standards. Users can easily adjust workflow requirements, modify application permissions for each user and set up user roles. The application is always current with automatic updates and in sync with organization's goals.
With $30 billion dollars waiting to be recovered, can insurers really afford to wait? The imperative has arrived: Insurers need to shorten processing times for investigations of fraud, ensure compliance with state and federal regulations, detect emerging trends and manage risk by eliminating recurring errors.
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