Big Data Already Paying Off In Insurance Fraud Detection

There’s a lot of talk right now about how big data is going to change insurance. Artificial intelligence and prescriptive analytics are definitely coming, and they will definitely change the insurance industry. To get a better idea of the specific ways in which big data applications are going to play out, it’s worth examining how data analytics are being used in the industry right now. Many insurers’ initial forays into the world of big data focus on fraud detection. That makes sense — the Insurance Information Institute (III) estimates that 10 percent of property-casualty insurance industry losses each year are attributable to fraud, to the tune of $32 billion.