(Portcullis of Cahir Castle in Tipperary, Ireland. Photo credit: Kevin King.)
SAS (Cary, N.C.) has launched a software-as-a-service (SaaS) delivery option for fraud analytics. The new SAS Fraud Framework for Insurance, available via the cloud, is designed to increase investigator efficiency and lower cost of ownership while maintaining security standards, according to the vendor.
The new offering is powered by SAS’s advanced fraud analytics engine and uses multiple analytics techniques, including business rules, anomaly detection, predictive modeling, database searches and link analysis, according to the vendor. SAS claims that the solution enables insurers to uncover more suspicious activity than traditional manual methods of detection.
Grange Insurance is among the first carriers to adopt the SAS Fraud Framework for Insurance. The Columbus, Ohio-based multi-line insurer sought to implement a solution quickly and feared that a traditional on-premise solution would take months to roll out, according to SAS. The traditional option would also require the procuring hardware and managing installation and configuration—tasks which would consume significant internal IT resources, SAS related. With cloud-based SAS Fraud Framework for Insurance, the carrier completed rollout within weeks, the vendor reports.
“Addressing claims fraud is essential for all insurers,” comments Ken Kozek, VP, claims, Grange Insurance. “SAS Fraud Framework for Insurance helps us more accurately detect potentially fraudulent activity. In addition, the pre-built fraud analytical models enabled us to implement the solution quickly.”
Insurers Warm to the Cloud
The willingness of insurers to adopt a cloud-based fraud mitigation solution is part of a larger trend of carriers warming up to the benefits of the cloud, according to Karen Pauli, senior executive advisor at research firm CEB TowerGroup. The company’s research has found that 59 percent of insurance carrier expect increased spending on cloud solutions over the next few years.
“Cloud-based applications and services have huge potential for the industry, making solutions more accessible to insurers of all sizes,” Pauli comments. “SAS Fraud Framework for Insurance in the cloud offers a fast and cost-effective way for insurers to implement fraud analytics technology.