Fraud detection: The impact of more and different data

When it comes to detecting fraud, insurers know that better data means better fraud decisions. Many insurers have relied on first-party data collected from policyholders and employees. The advent of the digital age, however, means that there is far more data than insurers can easily collect themselves.

Sources such as social media data, satellite data, financial data, and public records can remove blind spots and provide more signals to fraudulent activities. By contrast, if insurers can’t access or analyse these data sets effectively, these blind spots turn into increased costs and bad policyholder experiences.

This blog highlights some examples of the benefits that external data sets provide for insurers and why effectively utilising external data makes the difference when stopping more fraud.