Nucleus Research analysts have independently examined the deployment of SPSS Predictive Analytics software at a major insurance company to find a rapid return on investment (ROI) of 403% in three months time.
The insurance company is a provider of personal automobile insurance with an emphasis on nonstandard auto insurance covering drivers who, because of their driving record, age or vehicle type, represent higher risks and pay higher rates for coverage. Because the company insures drivers with higher incidences of accidents and claims, the company's profitability is dependent on its ability to identify fraudulent claims. Additionally the insurance company sought to accelerate and maximize the collection of subrogation payments sought when a claim is the responsibility of a policy holder from another insurer.
After exploring options to automate the workflows and data gathering related to fraudulent and subrogated claims, the company selected Predictive Analytics software from SPSS Inc. This enabled them to more rapidly identify and investigate suspicious claims. As a result, the company has accelerated payment collections, reduced costs of claims payments and improved overall customer satisfaction by handling unsuspicious claims faster.
"In addition to providing tremendous ROI for the claims process, the SPSS Predictive Analytics solution continues to provide new benefits to this insurance company in other areas, including customer retention and pricing analysis for its actuarial team. This is a clear example of technology delivering business benefits on multiple fronts," said Rebecca Wettemann, vice president of research, Nucleus Research.