AI is hot in insurance. By now, you’ve probably heard about the countless techniques that we use to apply data science, machine learning and artificial intelligence and how it directly translates to your detection process. So now you have these models, what are you going to do with them?
No, I don’t mean these models, obviously! We see a lot of insurance companies struggle with the fact that their data science is offline, while their detection process is online. Let me sketch you a scenario.
When you check into a hotel, you will either have to pay beforehand by cash, or the hotel will authorize your credit card. This means that the hotel will get the money for the services they provide, by preventing fraudsters from staying in a hotel for free. Now translate that to insurance. You don’t want to payout fraudulent claims. Because how are you ever going to get that money back? It might sound silly, but this is exactly what you do when you keep your data science models offline, while your detection process is online. You pay out fraudulent claims. It’s not good for the process, nor good for the business.
Making an automated prediction on each claim does not harm your genuine customer. Just like authorizing the credit card does not harm your hotel guests. So, why do we still see a lot of data science happening offline? Well, the main challenge is aligning your company is such a way, that you can handle claims in one system. But this requires a big effort. And often this is a company with huge investments in legacy systems.
At FRISS, everything we build fits our service level agreements. One of which, is making a detection call within two seconds. Yes, that is fast! Our automated prediction techniques will live up to that promise. Also, we will make sure that our software runs smoothly in your process. So the main point I want you to take out of this message is don’t leave your data science models laying on an offline shelf. Leverage the power or real-time detection! The benefits are countless.
