ICRA Limited Industry Research

Insurance fraud can be committed by either the buyer or the seller of an insurance policy.

The seller may offer policies from non-existent companies, fail to submit premiums, and churn policies to create more commissions. The buyer exaggerate claims, falsify medical history, post-date policies, sell their policy to for cash when they are diagnosed with a terminal disease, or fake their death or kidnapping. We will focus on the buyer insurance fraud in this post.

Everyone wants more leads, but the more we are able to generate, the harder it becomes to identify which of them are actually worth the time and effort spent in order to try to convert them. Lead scoring models let you automatically rank your leads in order of the perceived value each lead represents to your company. Resources for marketing and sales can then be distributed by the priority determined by lead scoring.

Credit scoring is a statistical analysis performed by lenders and financial institutions to assess a person’s creditworthiness for mortgages, credit cards, and private loans. Credit scoring is used by lenders to decide whether to extend or deny credit.
Traditionally, a person’s credit score determined by credit bureaus is a number between 300 and 850 with 850 being the highest credit rating possible. As new types of lenders and insurers emerge, however, the traditional credit score becomes just one parameter joined with a large variety of alternative data that helps determine a person’s creditworthiness. 

Fraud between companies can interrupt the flow of business and destroy their reputations and it is becoming increasingly difficult to identify and stop criminals from committing fraud: PYMNTS.com’s 2019 yearly report, “Securing B2B Payments,” relates that global markets lost $4.2 trillion in 2019 alone due to fraud. However, machine learning can identify fraud accurately before it has occurred.