Business success is increasingly
becoming characterised by accelerated innovation. The most important
test for any company in competition is by gaining information advantage;
an information advantage improves the quality and impact of critical
business decisions.
For example, in the 2016 insurance
fraud risk survey by KPMG, 37 per cent of the respondents in the East
Africa region use analytics to understand their fraud exposure or to
drive fraud strategy.
In the report, Kenya was unable
to quantify the detected volume of policy fraud and had a low number of
detected claim fraud cases compared to Tanzania but higher than Uganda.
It
did, however, have the highest scores for estimated per cent of
policies and claims that are fraudulent. This would support the
perception that there is insurance fraud in the region and is largely
undetected, especially as fraud arises in both policy and claims.
The
relationship between the consistent use of analytics to detect or deter
fraud and the reduction of costs incurred is no coincidence.
The
fraud detection process through analytics is made up of rich data,
meaningful rules, smart capabilities and efficient technology. Rich
data captured and managed to professional standards helps create
information assets that a company can capitalise on.
For
a business to gain benefit in actionable insurance analytics,
management must make a conscious effort to significantly improve the
organisation’s data quality, governance and management.
Insurance analytics is proving to be useful in
profiling and segmenting customers including a 360-degree view of a
customer. This is very beneficial in cross selling of products.
It answers the question, “Who do we target and how do we sell it to them?”
gogoti@kpmg.co.ke
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