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Fraud is the scourge of the Insurance industry. Data reported by the Nation Insurance Crime Bureau indicates that over 10% of all property and casualty claims are fraudulent. This type of insurance includes homeowners and auto insurance, which typically most Americans own. The FBI reports that non-health insurance fraud amounts to about $40 billion dollars annually. If you add in the impact of healthcare fraud, those numbers exceed $80 billion dollars a year. Those numbers are staggering and you can easily understand why combating fraud is the first priority with insurance carriers.
This is why insurance carriers and others in the industry have embraced big data and quickly employed data quality tools to combat the problem. No industry can continue to absorb losses to that magnitude without suffering significantly in the business environment. Unfortunately, the costs of those losses incurred are directly passed along to the customer in the form of higher premiums and reduced customer service options.
We also understand that data analytics cannot be completely effective without comprehensive and aggressive data quality tools. As the industry rolls out these aggressive programs, the key to their success will solely rest on the quality of their data quality tools. This is where other industries have struggled or failed with their data quality programs. These tools are used to address various aspects of the data quality problems within the insurance industry:
- Parsing & Standardization – Involves decomposition of text field into component parts into consistent layouts.
- Generalized cleansing – Modification of data values.
- Data Matching – Linking or merging related entries across data sets.
- Profiling – Analysis of data to capture statistics.
- Monitoring – Controls to ensure ongoing conformance of data.
- Enrichment – Enhancing the value of internally held data.
The timely and accurate deployment of these tools are crucial to a successful program. If you consider the potential annual losses reported of $80 million dollars, the insurance industry cannot proceed in a manner that is either hesitant or faulty. Insurers must consider the right partner when choosing data quality and data cleansing tools.
Data Ladder is the right partner for our insurance industry. We have the right software that exceeds all performance expectations in a timely manner. Our industry expertise is correctly positioned to advise and assist, and ultimately help the insurers stop the losses.
Go to DataLadder.com and download a free trial of our DataMatch Enterprise software and experience the difference our expertise makes.