Technology is a good investment for every sector of the economy. Development and fast growth is now possible for each industry which integrates the latest in the market. It has become both strength and opportunity for every business entity to achieve success. Yet, it is also a weakness and poses as a threat for vulnerable businesses targeted by fraudulent acts.
The business sector has introduced the shift of credit card usage to chip cards, a more complex system which prevents the increasing number of card frauds. Since it has been proven possible, other sectors demand their own share of strengthened protection. Insurance is one of the industries that desperately need a new management tool to stop illegal transactions, predict fake claims and avoid identity scams.
A recent report by Coalition Against Insurance Fraud suggests that insurers are now working harder than ever to produce technologically advanced systems and predictive analytics. With what has been achieved, a lot of insurance companies integrates and launches while developing countries adapt on it. It is a never ending cycle: invention, innovation, integration and variation.
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Take for instance the process in Asian cities and nations. When leading countries such as Singapore, South Korea, Japan or China has new system adapted from western countries, developing cities such as Bangkok, Thailand, Jakarta, Indonesia and Kuala Lumpur, Malaysia patterns their own data system and merge it to their own products and services. The security system is then being followed by other regions. Unfortunately for those who would not have the sufficient funds and resources to shoulder these costly systems, they resort to cheaper data protection applications instead.
Insurers cited data integration and poor data quality as a major challenge in implementing anti-fraud technology. Many projects get off track before they even get started because of data access and data quality challenges.
While technology is still lacking, there are still ways to protect information.
Many experts suggest integrating data silos for data analytics in each country’s core. Even as they come from different places, claims, policy, application, billing and medical data sources, the data should be gathered for proper management and easier comprehension for possible fraud breach. It is also critical to document the integration efforts and ensure that they are repeatable and auditable. This will be vital when companies already enable fraud analytics scoring in production.
Integration of these data in one silo can create erroneous statistics and figures. Employing certain number of people dedicated to check and recheck the validity of information on the silos can be useful in management.