Trends Report

Prevent Insurance Crime With The Four Cornerstones Of Better Fraud Management

Insurers Must Catch Up To The Sophistication Of Today's Fraudsters

December 6th, 2012
Andras Cser, Vice President, Principal Analyst
Andras Cser Vice President, Principal Analyst
Ellen Carney, Principal Analyst
Ellen Carney Principal Analyst
With contributors:
Stephanie Balaouras , Thayer Frechette

Summary

Fraud costs the US insurance industry upward of $40 billion, which the industry then passes on to policyholders in the form of higher premiums. Financial crime is on the rise as fraudsters become ever more imaginative — and technology-enabled — in their efforts to swindle insurance underwriters and consumers. During the second quarter of 2012, Forrester interviewed the heads of special investigative units (SIUs), insurance data science teams, and analytics vendors to hear their perspectives on the changing face of fraud and the benefits of fraud detection and measurement tools. Based on these interviews, it's clear that insurers need a multipronged approach to remain at least as ingenious at catching these financial criminals as the fraudsters are at eluding detection. For risk and fraud management professionals on SIU teams, this Forrester report examines how better fraud intelligence, standard metrics, and new mobile app capabilities can help proactively combat fraud.

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