Fewer than four in ten insurers have invested in tools that support fraud detection, according to a new report.
Celent, a research advisory unit of the management consulting firm Oliver Wyman, New York, published this finding in an April report, “The Market Dynamics of Claims Fraud Detection: Deal, Functionality and Technology Trends.” Exploring the market of claims fraud detection systems, the report bases its analysis on information collected from Celent’s 2012 research profiling information technology vendors active in claims fraud.
The report observes that insurers investing in “modern and sophisticated” claims fraud mitigation tools concentrated (just under 50 percent) among mid- and top-tier companies that generate more than $1 billion annually in revenue. IT fraud mitigation vendors have signed only about a quarter of their contracts with insurers that generate less than $500 million in premium annually.
The report adds that about 60 percent of insurers plan to invest in predictive analytics, fraud and data visualization tools. More than 80 percent of them consider these three technologies “differentiators.”