 ALKA detects fraud with PredictiveClaims™
ALKA is fighting customer fraud and enhancing customer services
with a predictive analytics application and recently purchased
and implemented the software to reduce the cost of fraudulent claims. ALKA Insurance, founded in 1903, is one of the top five of insurance
companies in Denmark with approximately 400 employees located at
its head office and call centers. ALKA is the trade union movements’ insurance
company and is owned by Danish employees’ interest groups.
The company offers several insurance products to the members of
the nine trade associations in Denmark. ALKA is almost a 100 per
cent call center based insurance company, with 8 out of 10 claims
processed over the phone. More information can be found at their
website
www.alka.dk. The predictive analytics software enables ALKA to automatically
determine during the claim notification process whether an incoming
claim qualifies for immediate approval or needs to be further examined
by experts. “We want to ensure that our honest and loyal customers are
presented with good prices. To accomplish this, we must reduce
fraud and the predictive analytics solution helps us realize this,” said
Jakob Laursen, vice-president business intelligence at ALKA. “We
also selected PredictiveClaims™ because it has extensive
experience in this domain from being implemented in several other
insurance companies. We’re already reaping the benefits of
implementing the solution in our claims environment.” PredictiveClaims™ works in real time, meaning that when
a claim is reported in the call center, the system automatically
provides an assessment of the likelihood of fraud. The call center
agent can then use this information to accept a legitimate claim
quickly or forward a suspicious claim internally for further investigation.
Typically, this approach helps insurers to reduce the high costs
for processing claims, by about 25 per cent. Which can easily result
in annual savings of several million euros. ALKA Insurance will be presenting on its use of predictive analytics
at the SPSS Directions European User Conference. This is being
held in Barcelona, Spain, May 21-24 2006. For more information
about the conference, please visit http://www.spss.com/spssdirections_europe/ Later on an interview with more extended information will be published
at Predictive Analytics Insight. | 
