Product Code: IT004-000372
Most insures have invested to some degree in fraud technology in the past five years. However, most of this investment, while beneficial, has been piecemeal and has tended to be focused on fraud detection at the claims phase. Ovum believes that a number of technologies have evolved to the extent that they now offer insurers a way to address the increasingly serious threat posed by professional fraud networks.
- Ovum believes that a number of technologies have evolved to the extent that they now offer insurers a way to address the increasingly serious threat posed by professional fraud networks. These technologies inlcude predictive analytics, text mining and link analysis. These technologies offer the promise of highly accurate fraud detection capabilties embedded within insurance process flows in real-time.
- This report will highlight key technologies, the strengths and drawbacks of these technolgies and how they can be used as part of a comprehensive fraud strategy
- This report highlights which technology will be adopted by the global insurance industry as it combats the growing issue of insurance fraud.
- How is insurance fraud evolving and why are current fraud strategies failing to keep pace with these changes?
- What are the technology areas in which insurers need to invest to implement an effective fraud strategy?
Table of Contents
- Ovum view
- Key messages
THE NEED FOR EFFECTIVE FRAUD DETECTION IS NOW AN URGENT PRIORITY
- Professional insurance fraud is a growing problem
- The need for revenue growth and cost reduction are driving insurers to
urgently address the problem of fraud
- Fraud technology in use today is not sufficient to address the growing
problem of professional insurance fraud
A RANGE OF TECHNOLOGIES NOW OFFER HIGHLY EFFECTIVE TOOLS TO COMBAT FRAUD
- Rules-based systems cannot address an increasingly complex fraud landscape
- Anomaly detection has a role in identifying new fraud patterns
- Predictive analytics will play a critical role in detecting the most
- Real-time predictive analytics embedded within insurance workflows are
becoming a reality
- The effectiveness of predictive analytics depends on having the right
- Text mining has an emerging role in driving the effectiveness of SIUs
- Link analysis
- An effective fraud strategy will give insurers a competitive advantage in
in tough market conditions
- Recommendations for insurers
- Fraud strategies should encompass all customer interaction points
- Multiple technologies should be incorporated in an integrated fraud
- Driving the effectiveness of an SIU should be a key objective of a fraud
- Finding, developing, and keeping the right people is a critical factor
in implementing an effective fraud strategy
- Recommendations for vendors
- Vendors need to develop strongly verticalized offerings and
- Vendors need to build teams with the strong insurance fraud skills and
- Vendors have a critical role ensuring clients fraud strategies remain
- Further reading
- Ovum Consulting
- Figure 1: Summary of key insurance fraud technology areas