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Jul 2022

Real-time data is a crucial asset in fraud fighting

Source: Middle East Insurance Review | May 2022

In a recent study FRISS has highlighted the challenges and opportunities facing insurers in their efforts to combat fraud throughout the policy lifecycle.
 
The new study Insurance Fraud Report 2022 gathered input from over 400 insurance professionals worldwide and provides insight into topics such as fraud schemes, data challenges, process automation and more.
 
The survey respondents have differing views on the challenges and benefits of fraud detection software solutions. The common theme however is the data challenge; from underwriting to claims to special investigations.
 
The difficulty is harnessing timely data to respond quickly when fraud is detected. FRISS’ past biennial surveys indicated that insurance professionals have struggled with inadequate data – either poor-quality internal data or limited access to external data sources.
 
Major findings of the fraud study include:
 
The pandemic accelerated digitalisation
COVID-19 will have a lasting impact on insurance, in large part because the pandemic has accelerated digital processes.
 
Fraudsters remain creative
Exactly how much fraud impacts the industry is always hard to pinpoint. The industry generally agrees fraud accounts for about 10% of all claims cost. 
 
Data crucial in fraud fighting
Having the right data in the right place and in real time, is essential to improve fraud detection. 
 
Optimisation is upon us
The future of fraud detection lies in the use of advanced technologies to support real-time, large-volume and highly precise modelling for claims and underwriting fraud. 
 
Increase investigator efficiency
A hybrid approach of human expertise and predictive models will be essential in preventing losses. M 
 

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