The Evolving World Of Fraud Detection In Underwriting

Today’s underwriting environment is under constant siege. New and emerging risks are mandating new underwriting and portfolio risk management techniques that demand improved or enhanced technologies to bolster performance.

We know that technology such as automation, digital applications, and advanced-analytics engines are further transforming operations such as underwriting, claims and marketing—principal drivers of corporate performance.

And while we know that insurers continue to struggle with technology and operations that operate separately, underwriters are faced with expense ratio pressures, a sticky measure of profitability.

In our current challenging and competitive environment, mistakes made during the underwriting process that are the result of fraud can cut deeply into an insurer’s bottom line.

“Analysis suggests that a substantial proportion of claims fraud is perpetrated through illegally obtained policies,” notes insurance fraud and security intelligence veteran James Ruotolo CFE, senior manager, Fraud Risk Mitigation, Grant Thornton.