Is fraud driving your premiums up?

Social Lead for IBM Analytics - Financial Services Sector, IBM

Have you ever wondered why your car insurance premiums are on the rise even though you have a clean driving record and haven’t made claims against your insurer? Insurance fraud hurts us all, and we all share its costs:

A significant percentage of a premium increase is to help cover losses due to insurance fraud. In the United States, insurance fraud accounts for approximately $30 billion in lost revenue for the insurance industry. Unfortunately for the consumer, that money has to come from somewhere, which is part of the reason for insurance premium increases.

Insurance fraud comes in many different flavors. Take car insurance fraud, for instance. One look at the following list can serve as a play-by-play of how “victimless crimes” have us all paying higher premiums each year:

  • Vehicle dumping
  • False registration
  • Exaggerated repair costs
  • Faulty airbag replacement
  • Faulty windshield replacement

And there’s much, much more. Only consider, for example, how fraudulent activity such as is seen in staged collisions is reflected on the bills of policyholders everywhere.

Insurance carriers can now turn to IBM for advanced analytics solutions as a way of protecting themselves against fraudulent crimes, keeping costs down for honest policyholders. Attend IBM Insight 2015, scheduled for 25–29 October in Las Vegas, to discover how advanced analytics solutions are transforming a broad range of industries. Using advanced analytics, your institution can rapidly identify and decode suspicious behavior; detect, predict and prevent internal and external fraud; and accelerate investigations to ensure compliance—and that’s just the beginning. first-hand how a large property and casualty carrier in South America has fought automobile claims fraud by unleashing an arsenal of rich analytics at the onset of the claims process. By going beyond business rules and adjusters’ intuition, insurers can proactively uncover suspicious claims and significantly reduce pay-and-chase exposure. To hear the full story, attend IBM Insight Session 2296 on Tuesday, 27 October, at 10:30–11:30 AM, in Ballroom I at the Mandalay Bay.

For an in-depth look at financial fraud management, be sure to attend other related sessions taking place at IBM Insight 2015:

  • “Reducing Corporate Risk—IBM’s Story” (Session 3307)
  • “How Banks Are Staying ahead of Fraud and Money Laundering Activities” (Session 2211)
  • “Understanding Counter Fraud Management” (Session 4233)
  • “The Arsenal of Predictive Analytics for Counter Fraud Management” (Session 3796)
  • “IBM Counter Fraud Management: Using Unstructured Data to Fight Fraud” (Session 3829)

Don’t miss even one of these sessions. Use IBM Event Connect to search for sessions by topic, speaker, session type, industry, day, time or keyword, then customize your own Insight agenda. Check out conference highlights, special events and logistical information to help you plan your conference experience, and be sure to reserve a seat in limited sessions. We hope to see you there!