Insurance fraud detection goes high tech by integrating video
Some analysts estimate that insurance fraud costs as much as $60bn dollars each year. It's a fact of life in the industry but there are ways to proactively reduce occurrences, writes Christina Bowe
Some analysts estimate that insurance fraud costs as much as $60bn dollars each year. It’s a fact of life in the industry but there are ways to proactively reduce occurrences, writes Christina Bowe
With businesses facing a barrage of threats from increasingly sophisticated criminals, there is a clear need for the industry to respond with intelligent solutions to detect and prevent fraud fast.
Insurers are now starting to realise the potential that rich media video content holds in the fight against fraud. It gives them the ability to identify and uncover otherwise hidden relationships and trends in business data that may indicate fraudulent activity.
However, managing such large and complex rich media files and providing examiners with an efficient way to access and view them can be challenging. It all hinges on providing access to the right information, at the right time, in the right way, to the right people.
One example is Pinnacol Assurance. The US-based insurer is successfully using the latest technology to simplify its process for capturing, storing and managing rich media files. Specialising in workforce compensation claims, the firm has now streamlined the whole process, allowing field investigators to upload videos and pinpoint key footage to make documenting workers’ compensation fraud easier. The retrieval and playback of the files has enabled it to transform its claims investigation process by providing critical cost-saving information and evidence during the insurance claim investigation.
To use video content successfully, insurers need to integrate it into their enterprise content management systems. Digital video files must be properly indexed so that the content can be linked to specific claims information, making it easy to locate when looking to identify possible anomalies in a claim.
In essence, every £1 lost to fraud is £1 that could be spent on keeping insurance premiums down. New technology can require an initial investment, but anything that can help chip away at the huge amount that insurers lose every year through fraud has got to be a positive move.