Insurers tap cloud analytics for fast, affordable fraud prevention
SAS® Fraud Framework for Insurance available as SaaS
Analytics help combat insurance fraud
Combating claims fraud is difficult and costly for insurers. But not for organized crime rings, which find insurance fraud to be a low-risk, high-return enterprise. That partly explains why the property and casualty industry loses up to $40 billion a year to fraud in the US alone.
To provide fraud analytics more quickly and affordably, SAS is now offering SAS® Fraud Framework for Insurance via the cloud. This new option not only increases investigator efficiency and lowers cost of ownership, but does it securely on the SAS Cloud as a software-as-a-service (SaaS) offering.
Recognizing the importance of tackling claims fraud, Grange Insurance wanted to implement a solution quickly. The company – which offers auto, home, life and business insurance protection to policyholders across 13 states – worried that installing a traditional on-site solution would take months. It would also involve procuring hardware, managing installation and configuration, and require excessive internal IT resources. In opting for a cloud-based fraud detection solution, Grange was able to make SAS Fraud Framework for Insurance available in weeks instead of months.
“Addressing claims fraud is essential for all insurers. SAS Fraud Framework for Insurance helps us more accurately detect potentially fraudulent activity,” said Ken Kozek, Vice President of Claims at Grange Insurance. “In addition, the pre-built fraud analytical models enabled us to implement the solution quickly.”
Analysts across industries point to a continued shift of IT budgets away from in-house installations to cloud-based delivery models. CEB TowerGroup research shows that 59 percent of insurance firms expect increased spending on cloud solutions technology over the next few years.
“Cloud-based applications and services have huge potential for the industry, making solutions more accessible to insurers of all sizes,” said Karen Pauli, Senior Executive Advisor at CEB TowerGroup. “SAS Fraud Framework for Insurance in the cloud offers a fast and cost-effective way for insurers to implement fraud analytics technology.”
Powered by SAS’ advanced fraud analytics engine, SAS Fraud Framework for Insurance uses multiple analytics techniques: business rules, anomaly detection, predictive modeling, database searches and link analysis. The solution enables insurers to uncover more suspicious activity than traditional manual methods of detection.
Learn more about SAS Fraud Framework for Insurance via the cloud or on-site to detect suspicious claims activity and organized fraud rings.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 75,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW®.