Fraud directly impacts the profitability of an insurance company. Insurance companies have installed sophisticated mechanisms to counter fraud, but have not been able to plug in the leak completely.
The only way to counter insurance fraud is by predicting possible instances of fraud in advance by leveraging the power of analytics.
Fraud continues to be a challenge for the insurance industry. Even with the current process controls and specialized monitoring at insurance companies, fraud continues to happen. It is largely owing to the changing nature of fraud and the fact that most of the losses are incremental such as over-billing, overstating a loss, etc.
The daily level needed to meet an agreed-upon service level for an activity such as proposal processing, claim processing or commission payout further raises the requirement to diagnose instances of fraud on the go.
The insurance process generates data at every step from lead identification to underwriting and closure of the sale. With these data points, a real-time fraud framework that can predict instances of possible fraud can be built. Using behavior analysis and interaction data points, the system can issue severity prompts to tackle fraud.
Aureus' Fraud Analytics solution is built on years of experience in analyzing real-time events to calling out suspicious activity all the while ensuring that the false positives are taken into account.
Using CRUX, we are able to deliver critical insights to the business user in near real time by processing structured and unstructured data from scores of data points such as interactions, transactions, relationships, demographics etc.
CRUX delivers the capability to analyze and identify fraud before it happens and lets the business user develop models in real time to counter newer types of threats that emerge. CRUX's Fraud Analytics is eight times faster than the current system with an accuracy rate of nearly 90%.
CRUX helps in identifying insurance fraud in real time or near-real time by using a combination of advanced analytics and machine learning. CRUX can identify fraud cases at a new business stage, claim stage and also at various policy life stages.
CRUX develops a highly accurate risk profile for every customer, which is regularly updated to reflect the most recent information.
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