PriyaPatel
TLDR:
- Legacy technology systems are a primary challenge in insurance fraud prevention, eating up IT budgets and hindering innovation.
- Fraudsters adapt quickly, outpacing insurers’ ability to respond, necessitating a 24/7 approach to fraud investigation.
The article discusses the future of insurance fraud prevention, focusing on insights shared by Glen Marr, the Financial Crime and Insurance Fraud director at PwC. Marr highlights the challenges in the industry, emphasizing the need to leverage technology, reassess strategies, and adapt to the digital age to combat fraudulent activities effectively.
One significant challenge in insurance fraud prevention is the reliance on legacy technology systems, which not only slow down services but also hinder innovation. Marr points out that these systems can consume up to 70-80% of IT budgets, making the integration of new solutions time-consuming and complex.
Another key challenge facing insurers is the rapid adaptation of fraudsters, who often outpace insurers’ response capabilities. Marr stresses the importance of a 24/7 approach to fraud investigation and the need for insurers to reevaluate their risk management strategies, focusing on people, processes, and technology.
Improving customer experience is also a critical focus, with an emphasis on streamlining claims processes to expedite genuine claims and reduce friction for customers. Technologies that can assess risk early in the claims process contribute to a better customer journey and operational efficiency.
Looking to the future, Marr discusses the importance of leveraging digital advancements to meet customer expectations and stay competitive in the industry. He also touches on the role of artificial intelligence in enhancing operational efficiency and the need for insurers to balance human expertise with automation and AI-driven solutions.
In conclusion, the article highlights the pivotal moment for the insurance industry and the importance of reevaluating existing fraud models to effectively combat fraud and provide financial benefits to insurers.
