The insurance sector is developing and modernizing quickly in various ways. Hot subjects including the adoption of different innovative technologies like mobile, insurtech, predictive analytics and blockchain are just a few of improvements that have transformed the manner in which insurers work. These subjects may play several critical functions in regards to fraud prevention and detection. Nevertheless, insurance organizations face various challenges when it comes to responding to fraudulent claims efficiently. A conference held in 2017 in Chicago reviewed some of the most innovative technologies insurers use for claim management. Other than identifying innovative technologies utilized in the insurance companies, the conference also pinpointed some of the most critical challenges that insurance businesses experience when it comes to fraud.
Among the most major issues had to do with privacy and data protection. The increase in the use of data and increased digitalization in these past years mean that insurance companies have an even larger responsibility in keeping customer data confidential and secure. The sector is depended on the trust that exists between customers and insurers, therefore, for these companies to offer the best customer experience for clients they have to ensure that their information is secure and private.
It has also become increasingly clear that with emerging expectations in customer service, transformation and innovation are critical to the industry. Insurers, therefore, must focus on predicting the needs of their clients and obtaining valuable insights about their needs and wants by using data and its various capabilities to remain competitive. Insurers can then maximize the customer experience of their clients and retain policyholders that are highly valuable while identifying new opportunities for business expansion.
Another critical issue affecting the insurance industry has to do with keeping up with the modern fraudsters and their operations. Fraudsters are often looking for the most vulnerable areas to exploit. They are highly knowledgeable and ensure that their work never comes to light. They make use of various modus operandi, fake identities, and different insurers to ensure that they are never caught. They often find ways to make use of fraud-proof systems and technologies to their advantage, as they are smart and fast. As it follows, insurance companies must be able to keep up with these criminals to catch any fraudulent claims that might occur in their organizations and to ensure that they do not lose money to fraudulent activities.
Many insurance companies find that they are unable to catch fraudulent activities because they make use of fraud systems that are outdated. In such cases, fraud will go on under their noses without them ever detecting it. The investigation and follow-up of possible fraudulent activity are most effective in cases where all the related information is available to the analyzers. Therefore, insurance companies must continually improve on their systems to give their customers the best experiences and protect themselves from criminals.