Claims typically account for up to 80% of an insurance company’s costs, making the way the claims process is managed vital to a company’s profitability.
This is particularly true in times of economic uncertainty, with growing pressures to settle claims faster with transparent fairness – but with fewer resources.
Unfortunately, the claims process is typically time-consuming and labor-intensive, involving multiple systems, outdated technology and distributed operational units. The resulting inconsistent processes and inefficient data management sap resources and slow turnaround times, which leads to negative customer experiences.
Predictive insurance claims processing, or claims analytics, is the process to analyze the structured and unstructured data at all stages in the claims cycle to make the right decision, at the right time, for the right party. Claims analytics can enhance the bottom line by:
- Reducing settlement lags and claims payout.
- Automatically assigning adjusters according to priority and skill set.
- Analyzing claim data to help with subrogation.
- Reviewing claims for litigation propensity
- Fighting increasingly sophisticated fraud.
Recognized as the industry leader in business analytics, SAS provides a complete framework of capabilities to help insurers significantly improve their claims management processes. This includes
- Superior data integration capabilities that let you pull data from multiple legacy claims management systems and automatically transform and cleanse the data.
- The most powerful predictive analytics available for analyzing both structured and unstructured claims data to reveal previously hidden trends.
- A flexible fraud framework for detecting and preventing claims fraud using a hybrid of business rules, predictive analytics and social network analysis techniques.
- Intuitive, Web-based reporting that enables easy communication of critical claims information to the right people within your organization.
Adding analytics to the claims life cycle can deliver a measurable ROI with cost savings and increased profits; just a 1 percent improvement in the claims ratio for a $1 billion insurer is worth more than $7 million on the bottom line.