BOSTON, November 20, 2008 -- 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.
The full case study is available at NucleusResearch.com All Nucleus Research ROI case studies are independent assessments, evaluating the costs and benefits from the IT deployment.
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Nucleus Research is a global provider of IT research and advisory services that provides CFOs, CIOs and their staffs with the real-world information they need to maximize the business returns from their technology investments, including successfully executing their IT deployments and determining the business value of their initiatives. For more information, visit NucleusResearch.com.
Chris McManus, 718-832-9154