Shift Technology, a provider of AI-powered decision optimization solutions for the global insurance industry, has officially announced the launch of its Insurance Data Network (IDN).
According to certain reports, the stated network will make it possible for members to leverage industry-wide intelligence, which it acquires using the collaborative multi-carrier exchange of claims and related data. Hence, all the participating insurers can come expecting valuable insights and analysis to enhance fraud detection and risk prevention throughout the entire claims lifecycle.
To understand the significance of such a development, we must take into account a report from Coalition Against Insurance Fraud, a report where it was revealed that insurers record nearly $122 billion in P&C insurance losses annually due to fraud, with almost 10 percent of claims exhibiting signs of fraudulent activity.
In fact, going by early results IDN indicate that when cross-carrier data is analyzed, identified fraud networks have, on an average, tripled in size.
“Insurers are continuously working to stay ahead of fraudsters as they recognize that their fraudulent activities extend beyond the scope of a single insurance company,” said Karlyn Carnahan, CPCU, head of insurance, North America, Celent. “Until recently, insurers had limited tools to understand behaviors of fraudsters beyond their own experiences. However, with this new ability to gain visibility, analyze, and extract insights from shared experiences across the industry, insurers have now regained control and power in fighting fraud.”
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