Predictive Analytics: Detecting Insurance Fraud

Extracted 15NOV2011 from http://www.propertycasualty360.com/2011/04/04/predictive-analytics-a-powerful...

Predictive analytics is the process of analyzing historic and current data and generating a statistical model to help predict future outcomes. At the heart of this approach is the concept of predictors: one or more variable factors likely to influence an outcome that can be measured or scored to predict probable results...

These capabilities, however, cannot be bought “off the rack.” Insurers looking to make predictive analytics a core part of their claims operations need several key capabilities. In our experience, there are two tiers of required capabilities: those necessary to establish a basic predictive-analytics process, and additional assets and skills needed to translate insights generated into lasting competitive advantage...

Systems integration also plays a major role, as insurers will need to link their predictive analytics tools with other key enterprise systems so they can conduct real-time analytics. Insurers also must build an appropriate operating model (including organization, processes, talent and metrics) that enables them to institutionalize their predictive analytics approach throughout the business, as well as a technical architecture that provides an appropriate platform for hosting their analytics tools.

[cf., http://www.scribd.com/collections/2745245 and related collections]