The March 2013 issue of Best’s Review has a good article titled “A New Approach.” (Note: The online magazine is available only to subscribers.)
The article points out that most carriers are not detecting the majority of their fraudulent claims. And while they may be using certain automated “flags” and scoring, carriers are not taking advantage of the latest predictive analytics models. Furthermore, the article provides an estimate that only 14 percent of carriers are “using any automated tools to detect underwriting or point-of-sale fraud.” Verisk has found that identifying discrepancies at the front end will go a long way toward minimizing future fraudulent claims.
Verisk has a keen interest in helping carriers fight both underwriting and claims fraud. In December, Verisk announced the launch of a new program called RISK:check Point of Sale. Also, our newsletter, Visualize, contains a must-read article on auto insurance fraud and how to execute a point-of-sale strategy.