How Insurance Works

Data analytics for better revenue assurance

It is estimated that the global electric utilities
industry loses around $85 billion annually as a result of fraud and theft. At the same
time, new stresses on power and water resources are expanding worldwide. That’s a serious amount of water and energy
– not to mention profits – going missing every single year. It’s bad for business,
bad for customers and bad for the environment. And in response, electric, gas and water utilities
are stepping up research into ways to protect revenues and reduce wastage. The challenge is that such initiatives are
typically expensive. So in an effort to reduce so-called non-technical losses – as well
as improve both operational performance and the bottom line, without increasing manpower
or OPEX – they are turning to analytics. A predictive analytic software like revenue
intelligence can predict what is the fraud probability, customer-by-customer. And what
is the financial impact in case you find the fraud? What is the value of these frauds? These are exactly the sort of questions advanced
analytics can help answer. Utilities are paying more attention to analytics.
They are recognizing the value of predictive analytics. So I think we are at a very important
moment when utilities are leaving the more traditional ways of doing things to really invest
in technology to predict what is the best way to do something. And with this you can
reduce losses, you can increase collection, you can reduce the failures on the grids,
whatever. Indeed, it’s not just getting greater insight
into fraud and theft that analytics can help with… The smartest way is apply intelligence first;
know the behaviour of all your customers. Learn with your own data. And with this you
can prioritize your investments in IOT, smart meters, whatever.

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