Implementation of predictive analytics capabilities has been on a steady rise in the insurance industry. There are implications for all lines of business in terms of how the technology can improve processes. But leveraging predictive modeling effectively means more than just implementing technology. Industry players share these tips for unlocking value from these efforts:
1. Bring in people who understand the readouts
Universal American, the health insurer who spoke to I&T recently about beating fraud with predictive analytics, completely remade its special investigations unit (SIU) in anticipation of the new approach. That didn't mean just bringing in technology folks, according to SIU manager James Cooper. Universal American brought in subject matter experts who could identify potential malfeasance in the data.
"We went from not a very sophisticated SIU to a full-blown unit that has nurses and coders and claims handlers," Cooper said. "Before it was just two handlers that were chasing down claims on a spreadsheet. We went from the stone ages to high tech in the matter of a year."
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