In fraud news:

Advanced technology is the final frontier for insurance companies attempting to detect fraud, from both the individual and systemic standpoint. A new study from the Coalition Against Insurance Fraud found that, “more insurers see a positive ROI and they increasingly rely on technology to counter emerging threats such as underwriting scams, money-laundering and cyberfraud.” However, “advanced tools such as predictive analysis and geo-mapping are far from widespread among insurers.” Also of note, 95 percent of insurers said they use anti-fraud technology, compared to 88 percent in 2012. The level of technology has been slow to move though as most insurers (81 percent) use basic tools such as automated red flags/business rules, but far fewer employ more-advanced technology such as link analysis (50 percent), predictive modeling (43 percent) and text mining (43 percent).

See Workers’ Comp Institute 360 for the full report here.

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