The Pursuit Of Predictive Analysis
Detecting claims fraud early in the game--at the prepayment stage--saves insurers not only a lot of pain, but a lot of money.
Fighting fraud is becoming more meaningful to most insurers, research indicates. The Washington, D.C.-based Coalition Against Insurance Fraud (CAIF), for instance, found that 86% of insurers track the percentage of claimsthey refer to their SIUs and that 39% refer between one percent to three percent of claims.
"British insurers have had success with VSA," Quigley says. "It's new on the horizon. It functions like a lie detector test, registering stress within a person's voice. It suggests that there might be deception occurring. It's one more tool to refer to an SIU for follow up."But the downside of VSA is that it's very "Big Brotherish," Quigley adds. "People might consider it an invasion of privacy. And it would not bode well if VSA implicated someone for possibly committing fraud, only later to be found innocent. These are all thing that insurers have to think about when they expand their programs."