U.S. Casualty and Property Insurers waste $30 billion annually on fraud, affecting profit margins and increasing staffing hours. Insurance companies are left with a need to improve their claims process in order to keep up with the growing load.
To deal with this load, you need to increase your speed and accuracy to more quickly identify and reduce fraudulent claims. This will improve customer service and retention while balancing your book of business and managing your pool of risk.
Oftentimes, wrong decisions are made based on inaccurate information, or not having the right data available from within your company and external sources in a timely manner.
Using Big Data and Machine Learning, insurance companies are able to more quickly identify fraudulent behavior and process claims faster.
A well-known axiom in risk management is: “If it is predictable, it is preventable.” At Infinilytics, we believe that the best practice for insurance claims analytics are the four R’s: The Right Data, at the Right Time, to the Right Person, for the Right Decision. Together these can lead to improved customer retention and fast-tracking payments so you can pay honest customers faster.
The claims representative is the critical link in your business process. Accurate information must be obtained from the policy holder, claimants, and other individuals involved in the claim. The claim representative must be able to accurately analyze all of the facts, and determine if the stories match the evidence of the claim. If you automate the data gathering process and collect the right external data, and then leverage it with your internal data. patterns and trends quickly appear, which leads to better decision making by your claims team. You can increase your team’s accuracy and efficiency, and lower the costs to process claims.
Genuine claims need to be validated quickly to avoid unnecessary delays, and in certain cases, expedite fast track payments. Insurers can’t pay claims quickly enough. The insurance promise is brought into question during a delay in claim payments
Insurers realize it is far cheaper to retain a customer than to recruit one. In their attempts to retain customers, they frequently extend multiple discount policy offerings or other incentives.
Since paying claims is directly related to customer retention, if a genuine claim is delayed, the customer becomes disgruntled and may move their business elsewhere.