Magnify, a provider of advanced predictive analytic and decisioning software and solutions, has signed a strategic alliance with Computer Sciences Corporation (CSC). Under the terms of the agreement, CSC will add Predictive Targeting System(TM), Magnify’s advanced insurance claim fraud detection technology, to its suite of property/ casualty (P&C) cost containment products and services. The two companies will also collaborate to develop and market new solutions for the insurance market.
Predictive Targeting System helps insurance companies lower claims costs by improving the efficiency and effectiveness of identifying fraudulent claims. Using sophisticated predictive models and business rules, Predictive Targeting System identifies which claims to focus on, helps automate what actions to take, and provides the ability to manage and measure results through web-based reports and analytical data mart. With Predictive Targeting System, fraud detection begins the moment a claim is reported and continues as new information is added over the life of the claim.
According to the Coalition Against Insurance Fraud, the problem of insurance fraud is costly, totaling nearly $80 billion annually. The National Insurance Crime Bureau estimates fraud equals approximately 10 percent of all losses, costing policyholders an estimated $200-300 per year in added premiums. Yet according to studies by Conning & Company, P&C insurers detect less than 20 percent of their fraud.
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