Insuranceciooutlook

3 Ways for Timely Discovery of Fraud Attempts

By Insurance CIO Outlook | Wednesday, September 02, 2020

The insurance industry can unlock its potential in preventing fraud by undertaking measures that help detect threats beforehand.  

FREMONT, CA: For insurers, guarding against fraud is as important as providing insurance covers to clients. The spectrum of suspicious elements that insurance systems are exposed to is continuously expanding. Thus, security measures from insurance firms should also evolve accordingly. Most experts concur on the fact that early detection is vital for insurance companies to prevent deadly frauds. Early detection gives companies more time to act, increasing the chances of appropriate response and recovery. Therefore, every strategy deployed by an insurance company should be evaluated from the perspective of quick detection and response capabilities. Some ways in which insurers induce timeliness in responding to frauds are listed below.   

Using the Watchful Eye of Technology

Leveraging advanced monitoring and detection tools are important for an insurance company to ensure optimized fraud discovery. Manual detection systems that are more reactive than proactive are not effective anymore. Insurers with cybersecurity tools that enable automated monitoring of critical processes and generate alerts on detecting anomalies allow timely detection of frauds. Driven by intelligent algorithms that feed on data to improve results over time, modern threat detection capabilities are a must-have for insurers.

Using Data to Understand Patterns

Fraudulent claims that have already affected the insurance industry over the years can be very effective in helping insurers understand the pattern of risk. Industry-wide claims data from a host of sources can be fed into machine learning-backed solutions to determine vulnerabilities that resulted in fraud. With this factual and actionable intelligence, timely detection of frauds becomes significantly easy. 

Screening of Claims with High-Precision Tools

Several advanced technologies can be applied to address the issue of fraudulent claims. One of the most powerful technologies in this context is predictive analytics. With predictive analytics, insurance companies can screen claims and thereby predict risks. Other intelligent screening solutions can also bust claims fraud attempts before they impact insurance companies.

Technology can empower insurance companies to increase resilience against fraud by flagging risks in an accurate and timely manner.

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