Finanswatch, Denmark: Cognizant’s Country Manager for Denmark Says Insurance Companies Have Extra Tools Against Fraud by Analyzing Customer Data Alongside Behavior

“The increase in the complexity of insurance fraud schemes has exposed the limitations of traditional fraud-detection systems, such as internal audits, whistle-blower hotlines to report fraud, and software that flags anomalies based on a pre-defined set of rules,” says Thomas Djursoe. “By analyzing customer data alongside behavior, insurance companies now have extra tools against fraud that otherwise would be hard to detect using more traditional methods.” Excerpts:

“The sensors in a tracking device monitor a driver’s behavior behind the wheel, if there is speeding or any harsh braking involved or sudden turns are taken, and so on. Therefore, a much more effective risk assessment of the driver profile is now given to the insurance companies than beforehand. In turn, drivers can benefit from reduced premiums from adopting safer practices.

All this data, or “Car Halos”, in this instance, surrounds each driver and can be tapped into and analyzed. Using analytics and real-time information generated by the telematics and sensors installed in the car, the insurance companies get a clear picture of the risks involved in the driving and can thereby more easily weed out fraudulent claims.

By tracking social media accounts and applying social network analytics to the information on social media, insurance companies can gain relevant information about the claimant as well as that person’s potential involvement with organized crime networks.

Text analytics helps companies gain critical insights from large volumes of unstructured data. Geospatial analysis can provide location-based information related to a claim, as well as the physical proximity of the claimants and others involved in a claim.

Ultimately, the companies who send a strong message about their commitment to fighting insurance fraud will be the ones securing the trust of existing and future customers as well as investors and reducing premiums as a result of fewer fraudulent payments.”

Click here to read the article in Danish.