The Escalating War on Insurance Fraud: P&C Carriers and Fraudsters Up Their Games
Report Summary
The Escalating War on Insurance Fraud: P&C Carriers and Fraudsters Up Their Games
In the war against insurance fraud, insurers must deploy innovative technologies even earlier in the claims process.
Boston, April 3, 2013 – A new report from Aite Group provides an overview of the North American P&C insurance fraud battlefield, including its history and evolution. Based on July 2012 to March 2013 Aite Group interviews with North American P&C industry stakeholders and industry fraud-prevention organizations, the report sizes the cost of fraud, details fraud types and their perpetrators, and describes anti-fraud solutions being developed and deployed.
Insurance fraud impacts not only every insurance company but virtually every consumer and taxpayer worldwide, and it shows no sign of easing. Aite Group estimates that claims fraud in the U.S. P&C industry alone cost carriers US$64 billion in 2012 and will reach US$80 billion by 2015. P&C carriers are just now beginning to focus their fraud management strategies and investments on solutions that enable fraud detection as early in the claims process as possible, before claims payments are made and valuable investigative opportunities are lost. As the industry attempts to keep pace with fraudsters' varied, ever-shifting tactics, it must deploy more innovative, effective anti-fraud technologies or risk dire losses.
“P&C carriers should revisit and update their enterprise fraud strategies and actively review the many new and more effective solutions in the marketplace,” says Stephen Applebaum, senior analyst with Aite Group and author of this report. “Carriers that fail to improve their fraud-detection capabilities will find themselves both attacked by knowledgeable fraudsters and competitively disadvantaged.”
Vendors and organizations mentioned in this report include the Coalition Against Insurance Fraud (CAIF), CSC, Detica NetReveal, Equifax, Experian, FICO, IBM, Innovation Group, Insurance Bureau of Canada (IBC), ISO/Verisk, KPMG, LexisNexis, Mattersight, Mitchell, the National Insurance Crime Bureau (NICB), SAP, SAS, and TransUnion.
This 40-page Impact Report contains 16 figures and two tables. Clients of Aite Group’s P&C Insurance service can download the report.