Published on 28 May 2013
Santam is South Africa’s largest short-term insurance company with assets of over R17 billion (US$ 1.88 billion). It provides personal, commercial, agricultural, and specialist insurance policies throughout South Africa and holds additional businesses in Zimbabwe, Malawi, Uganda, Tanzania and Zambia.
Santam faced the challenge of operating in an environment where fraud was estimated to account for between 6 and 10 percent of all premium revenue because of the challenges of managing complex claims while maintaining a high level of customer service. To solve this problem, Santam sought to find a more personalized method for managing each claim and prioritizing the effort needed to successfully investigate and mediate each claim.
The Head of Finance, Reporting and Salvage at Santam, sought to automate and manage these claims through a predictive analytics solution. Santam’s vendor evaluation process led to a decision to select either SAS Institute or Olrac SPSolutions (an IBM Partner), which was offering an IBM SPSS-based solution. Santam sought to create an advanced predictive analytics deployment and were sure that Olrac SPSolutions had the skills and prior experience necessary to build the necessary functionality from an IBM SPSS base solution.
The detection of an insurance fraud syndicate that had previously gone undetected; The use of predictive analytics to categorize claims also reduced the time and cost associated with settling cases; Low risk cases no longer have to go through the exhaustive due diligence that previously took at least three days to perform. Now, approximately 50 percent of these claims are accelerated through improved categorization. Fifteen percent of claims, or about 54,000 claims, can be processed in less than an hour, representing a 95 percent savings in time.
IBM products and services that were used in this case study.
SPSS Collaboration and Deployment Services, SPSS Decision Management, IBM SPSS Modeler
Big Data, BA - Business Analytics, Business Continuity, Business Integration, Empowering People, Enabling Business Flexibility, Enterprise Modernization, Entity Analytics, BA - Predictive Analytics, ROI Study, Transforming Business
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