On a daily basis, p&c insurance providers mine through vast repositories of data to validate and process thousands of claims.
Yet, billions of dollars are lost annually because of fraudulent insurance claims. In order to provide quality services to their customers, providers need to recover this lost money. Preventing fraud requires mining and analyzing massive volumes of data to gain better insights and, in turn, improve decision-making ability.
According to a recent survey by FICO1 and Property Casualty Insurers Association of America (PCI), 45 percent of insurers estimated that insurance fraud costs represent 5 to 10 percent of their claims volume, while 32 percent said the ratio is as high as 20 percent. More than half (54 percent) of insurers expect to see an increase in the cost of fraud.
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