Insurance companies constantly strive to improve customer service, aiming for rapid claim settlement and a price differential over the competition. In order to do so, they need to reduce the time and costs associated with handling claims, while simultaneously detecting more fraud. It is an extremely complex balance to strike.

For this specific reason, a predictive analytics solution (e.g. PredictiveClaims from SPSS) can help insurance companies detect and control fraud and improve the efficiency of the claims handling process. Using a range of analytical techniques, the solution will be able to build on the organisation's established knowledge of fraudulent behaviour, to further detection and improve response rates. Furthermore, insurance companies are able to move to more dynamic business models, undertaking real time claims processing.

Butler Group’s Technology Audit on PredictiveClaims includes the following key findings:

n "PredictiveClaims reduces the cost of claims processing and improves the quality of customer service, enabling rapid claim handling. It not only allows insurance organizations to be more proactive and rigorous about fraud detection, it also allows process improvements in handling incoming claims. As a consequence, businesses using this kind of technology are able to further differentiate themselves on price and service by passing on the savings to their customers."

n "PredictiveClaims keeps in phase with the changing nature of fraud techniques. The technology is also used to periodically scan for new emerging trends to keep fraud profiles up to date with the latest techniques used by criminals. This predictive capability is a key differentiator."

n "PredictiveClaims follows the strategy of embedding capabilities into the logical operational application used by the organisation, delivering information directly at the right time and point in the process rather than requiring users to switch to another interface to get the information they need. Significant productivity gains can be delivered."

Download the Butler Group’s Technology Audit on PredictiveClaims here.