Celent looks at how technology is giving insurers new tools to fight fraud.
In a new report, Insurance Fraud Mitigation Technology: Beyond Red Flags, Celent identifies the fraud mitigation strategies available to insurers, and the specific technology solutions that can make those strategies much more effective than the traditional red flags.
The report estimates the amount of addressable fraud, that insurers can actually find and fight. It describes the business value of fraud mitigation technology, and provides examples of leading vendors and solutions. It also identifies fraud mitigation best practices.
“Celent estimates that the amount of fraud that is actually addressable ranges from 1% to 4% of claims or expenses in the different sectors of the insurance industry,� said Donald Light, senior analyst and author of the report.
Light continued, �Fraud identification technology ranges from very simple to very sophisticated. Available technology and tools include: red flags, predictive modeling, neural networks, profiling, claims databases, identity matching, link analysis, and investigation management. A good fraud mitigation program will combine several technologies and methods, using vendor-supplied tools and working with vendor professional services groups.”
The 25-page report contains four figures and three tables. A table of contents is available online.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com.