According to the Insurance Information Institute, the net premiums written for the property & casualty insurance sector totaled $533.7 billion in 2016, and employs over 650,000 people. With an industry so vast, it’s no wonder that the carriers are looking to digital solutions to help lower claims costs for several reasons, one being new approaches to fraud fighting.
Danni Santana of Digital Insurance writes that “policyholder fraud continues to be a leading cause of incurred underwriting losses annually in the U.S. And carriers are now ramping up detection efforts to fight back. The Insurance Information Institute finds nearly 10% of annual property & casualty losses result from fraudulent claims data.” Santana’s article also notes that a recent Verisk Analytics study found that premium leakage (in other words, missing or erroneous underwriting information) amounts to nearly $29 billion a year in losses just for personal auto insurers.
Santana interviewed George Naftzinger, Director of Claims at Allstate, four months after they engaged Carpe Data to help investigate claims. According to Naftzinger, the partnership with Carpe Data represents Allstate’s quickest approach to detecting fraud in less than 24 hours.
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