Fraudsters are highly likely to take advantage of any weak spots that an organization has. To work in a digital insurance working space requires suitable fraud-fighting technology in order to ensure that the organization is well-protected from fraud and high risks.
Anti-fraud projects are for the organization as a whole, so it is crucial to involve the right stakeholders at the right time. This is because the entire organization is affected by the implementation of an automated solution that detects and mitigates the risk of insurance frauds. Even as it might be cumbersome to align the organization and various departmental stakeholders together, internal alignment is crucial to the success of the anti-fraud project. The solution also improves the regular working of staff by identifying and resolving cumbersome manual processes used earlier, while improving the company’s market position and perception as a trustworthy insurer. An automated fraud detection and risk mitigation solution proves beneficial to insurers by improving combined ratios, reducing loss ratios and enabling straight-through processing. This results in profitable portfolios that contribute to an honest insurance industry.
Describing the business requirements and advantages to each stakeholder being affected by the solution can prove beneficial. The senior management should be heavily involved in order to attain a fraud-fighting culture, and the key performance indicators should be suitably aligned. However, even after aligning the stakeholders, it might take time to discuss and negotiate with other departments directly affected by the implementation of the solution. Eventually, the implementation might lead to a change in defining the processes, which is best realized by building a constructive yet innovative foundation for the project. Most importantly, it is essential to start ahead of time as the project will have varying degrees of importance to different stakeholders.