Is this another case of being seen to invest in technology for technology's sake? Like combining AI, blockchain and anti-fraud into one solution to show technology virility? This report from Coalition Against Insurance Fraud and SAS raises interesting questions.
There is no bypassing the critical need to master data management. Too many insurers still cannot access, join and analyse the vast majority of data in silos, core systems of record and the daily influx of emails and documents. One measure has this as high as 80%.
So get this right first with solutions like 360Retrieve and which will unlock unstructured, semi-structured and structured data. Proven in Police Forces it now offers Fraud Data and Analytics solutions.
Dennis Jay, Executive Director of the Coalition Against Insurance Fraud makes the point that technology alone is not a solution. Combining technology with seasoned investigators and analysts is the way forward.
Simple, opportunistic fraud an be deterred in self-serve FNOL digital claims. In home and contents claims 35% of claimants withdraw as they submit text, photo and video evidence. Their "story" unravels and they withdraw claims freeing up the insurer from time and expense processing the claim.
That means investigators can focus on professional fraud, crime rings by combining human intuition with technology.
As the data collected increases so too does the potential to apply predictive analytics and AI to tackling fraud. But, as always, don't run before you can walk the walk.
On the investment findings, Jay strikes a cautionary note. “Many in senior management seem to have fallen in love with hot innovations, such as AI, without really understanding that success requires employing trained analysts and investigators to interpret the data produced,” he says. Jay also emphasizes looking beyond the specific anti-fraud products your competitors are adopting to determine which technology partnerships are the best for your company. “Those who take the time to thoroughly investigate potential solution providers are achieving better results than those who simply jump into purchasing the latest thing, he says.”