Big Data Already Paying Off in Insurance Fraud Detection

Big Data Already Paying Off in Insurance Fraud Detection

Big Data Already Paying Off in Insurance Fraud Detection

There’s a lot of talk right now about how big data is going to change insurance. Artificial intelligence and prescriptive analytics are definitely coming, and they will definitely change the insurance industry. To get a better idea of the specific ways in which big data applications are going to play out, it’s worth examining how data analytics are being used in the industry right now.

Many insurers’ initial forays into the world of big data focus on fraud detection. That makes sense — the Insurance Information Institute (III) estimates that 10 percent of property-casualty insurance industry losses each year are attributable to fraud, to the tune of $32 billion.

And most believe the problem is getting worse: 61 percent of property-casualty insurers report that the number of suspect frauds increased slightly or significantly over the past three years, according to a 2016 white paper issued by the Coalition Against Insurance Fraud. Insurance companies have always relied on technology to fight fraud. The III reports that 95 percent of insurers say they use antifraud technology, but about half say a lack of information technology resources prevents them from fully implementing it.

Read Also:
The Benefits of Leveraging Unstructured Data in 2017

Enter big data. At the beginning of 2016, Towers Watson reported that 26 percent of insurance companies were using predictive analytics to address fraud potential. In the next two years, that number is expected to jump to 70 percent—more than any other big data application.

As data scientists team up with claims department leaders and other insurance professionals, many are looking to text mining as a crucial analytical tool for decoding enormous amounts of unstructured data.

Put simply, text mining is a way to scan large amounts of data for keywords, not unlike a web search. But claims departments are putting the technology to more sophisticated use, analyzing information for more significant data points and connections. Text mining can interpret claims adjusters’ handwritten notes and scan a claimant’s social media accounts for suspicious activity in nearly real time.

 



Chief Analytics Officer Europe

25
Apr
2017
Chief Analytics Officer Europe

15% off with code 7WDCAO17

Read Also:
Why Blending Analytics and Gut-Feeling Benefits your Business
Read Also:
AI or Fintech: Which will have a bigger impact on finance

Chief Analytics Officer Spring 2017

2
May
2017
Chief Analytics Officer Spring 2017

15% off with code MP15

Read Also:
Why Blending Analytics and Gut-Feeling Benefits your Business

Big Data and Analytics for Healthcare Philadelphia

17
May
2017
Big Data and Analytics for Healthcare Philadelphia

$200 off with code DATA200

Read Also:
Bridging the business intelligence and analytics gaps

SMX London

23
May
2017
SMX London

10% off with code 7WDATASMX

Read Also:
Do you speak the language of Data Analytics?

Data Science Congress 2017

5
Jun
2017
Data Science Congress 2017

20% off with code 7wdata_DSC2017

Read Also:
Bridging the business intelligence and analytics gaps

Leave a Reply

Your email address will not be published. Required fields are marked *