Accenture believes that implementing an efficient anti-fraud program and organization can create a competitive advantage for an insurance company.
A focused effort to combat fraud can have a positive impact on the insurer’s reputation and can help restore customer confidence. It also helps demonstrate that fraud is a major concern for insurers, reassuring clients that the firms’ efforts to reduce fraudulent claims costs—which, in turn, do not get passed on to them—help support fair pricing for their policies.
We have also seen examples of a connection between external fraud cases and some internal fraud or money laundering cases, which is another reason for insurance companies to strengthen their fraud-fighting efforts. In P&C (property and casualty) insurance lines, we have seen instances where a money laundering case was linked to an insurance fraud claim, such as an arson claim for a car paid in cash, followed by the payment of the claim by the insurer.
According to our 2015 Global Risk Management Study (a survey of 470 C-suite insurance, banking and capital markets officers across geographies and 12 countries), 74% of the insurance respondents expect cyber and IT risks to become more severe and 65% expect fraud and financial crime to pose a greater concern. We see insurance respondents more actively looking for greater returns on their investment by increasing the efficiency and effectiveness of the compliance process.1
In this context, an efficient anti-fraud organization and process, supported by an integrated data set and the use of advanced analytics and visualization techniques, can become a real value driver and a platform to improve insurers’ fraud detection rate and reduce their costs.
For more information, view our latest perspectives on Fraud and Financial crime.
Other parts of this series:
 “Accenture 2015 Global Risk Management Study: Insurance Report,” Accenture, July 2015. Access at: https://www.accenture.com/us-en/global-risk-management-research-2015-insurance.aspx