For insurance companies that want fraud management to be data-driven and buttressed by expertise, FRISS is a great solution. This is one of the findings from research by Aite Group, captured in its “P&C Insurance Fraud Solutions: Beyond Pay and Chase” report. The study positions FRISS as an industry leader: “Using their industry experience and research and development, FRISS offers a platform custom built for insurance with over 500 out-of-the-box indicators.”
Fraud prevention is a hot topic
Insurance fraud costs are estimated to be between 5% and 20% of all claims. Therefore, fraud prevention is a major opportunity for insurance companies to expand their profit margins. In the report, Aite identifies key trends in data security, emerging data and technology, and multichannel fraud management. Most important conclusion for insurance carriers is that they need to maintain a positive customer experience, whilst managing fraud. This is a real challenge, as customer loyalty is decreasing. Next to fighting fraud in the claims process, Aite predicts that the importance of detecting fraud during underwriting will increase at a greater rate than it ever has in the past 15 years.
Opportunity in SaaS
One of the trends highlighted is the massive shift from “on premise” software installations to the use of software solutions in the cloud. By using Software-as-a-Service (SaaS), insurance companies can expand their fraud-detection capabilities. This saves them from investments in financial and human resources to undertake a significant implementation for a fraud solution. The report shows that, unlike typical claims and investigations solutions, FRISS has created a fully Software-as-a-Service platform. It can function beyond claims to incorporate similar processes for applying rules and analytics to the quoting, application, and underwriting process.
Marc Mulder, Director of Sales & Marketing at FRISS, said: “Apart from our existing on premise solution, we are delighted to see that our SaaS strategy pays off. We strive for honest insurance on a global scale, and as European market leader we formed a solid basis for our expansion to other territories – such as Latin America. Of course this is also made possible thanks to the efforts of our growing partner network.”
Aite Group is an independent research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial services industry.