At this year’s America’s Claims Event (ACE) conference in New Orleans, Gary Gilver, Vice President of Claim Operations at Cincinnati Financial referenced in-database processing and predictive analytics as two key technologies that will dramatically influence the future of claims processing. He urged insurers, “if you’re not having conversations about these technologies with companies like SAS, you should.”
Several of the sessions were focused specifically on fraud detection. John Sargent, the Director of the Special Investigations Unit (SIU) for MetLife Auto & Home described how analytics is used to help detect suspicious claims activity. It was once thought of as a basic tool but has now become an integral part of the organizational structure and business process of the SIU. In fact, several new positions were created at MetLife as a result of the technology improvements in order to better leverage the value brought by analytical detection.
Geico SIU Director Steven Rutzebeck delivered a fascinating presentation on how to properly plan for effective use of SIU investigators during a major catastrophe. Geico spends a lot of time planning and preparing for these events and have seen great value in the process, particularly for dealing with large hurricanes in the southeast. While the presentation focused on logistical concerns (like renting RV’s, chainsaws, and generators in advance of a storm), Rutzebeck highlighted the value of analytics. Remote analytical teams are able to screen incoming claims by a variety of variables to look for specific cases that would benefit from SIU involvement. This allows real-time intelligence to be fed to investigators on the ground in areas directly affected by the catastrophe. This live intelligence feed, powered by analytics, delivers powerful results. According to Rutzebeck, in this fashion Geico identifies suspicious claims that would almost certainly have not been detected through standard means.
Of course my own session, A Hybrid Approach to Fraud Detection, was focused on analytics and used the methodology of the SAS Fraud Framework for Insurance as an example. And many of the vendors in the exhibit hall are now using the word “analytics” in their marketing materials.
The key for insurers is to now move from analytics as a buzzword to analytics as an integral part of their business process as described here. Are you leveraging analytics for fraud detection, subrogation, litigation management or other parts of the claim process? Tell us in the comments.
