Do this to prevent insurance fraud in 2022 | PropertyCasualty360

Insurance carriers are faced with making technical decisions and investing in digital information as the first step in customer onboarding and ongoing customer support. (Bits and Splits/Adobe Stock)

Insurance fraud takes many forms, but the cost is consistent and predictable.

Insurance fraud collectively harms consumers $80 billion a year and increases the income of the average family up to $700 per year.

Insurance fraudsters are often clever, well-organized criminals who take advantage of the company’s accidents to make money. Most notably, they take advantage of the agent’s inability to verify the authenticity of the applicant. Coupled with trends in large companies, such as increased automation, exposure to customer PII from data breaches and financial gaps in customer assurance, it is easier than ever for threat actors to commit insurance fraud based on identity theft.

Also troubling the trend are growing consumer concerns about data privacy and identity verification. IDology’s annual Consumer Digital Identity Survey found that two-thirds of Americans are very concerned or uncomfortable with security breaches and ransomware attacks yet, less than half believe they have the knowledge and tools to protect themselves.

Therefore, carriers are faced with making smart decisions and investing in digital information as the first step in customer onboarding and ongoing customer support.

Providers looking to improve fraud protection should consider these best practices:

No. 1: Improved ride quality without compromising safety.

While KYC and other identity verification methods help to detect and prevent fraud, insurance carriers need to balance the interests of consumers with the reality.

Today’s users are constantly struggling, and many give up on creating an account if they find the process too complicated or difficult. For example, 48% of Americans have stopped applying for a new online account because the process was unreliable or took too long. In other words, consumers don’t like more authentication methods but they do value security. In fact, 82 percent of consumers think that insurance is very important or very important, which requires insurers to jump the needle in the process.

In response, insurers must have the ability to perform risk assessments and underwrite with limited consumer knowledge. Insurers can accomplish this difficult task by using a flood of easily accessible, but non-conflicting information, such as IP addresses, phone numbers and email addresses.

By using solutions that rely on emerging technologies such as machine learning, insurance carriers can better analyze this information to quickly and easily verify customers and reduce fraud.

Number 2: Create custom authentication protocols.

The insurance sector is becoming increasingly digital-first, with many carriers using self-booking and self-service to support consumer preferences. About 70% of consumers it shows that they would rather self-serve than talk to a company representative, so it’s a situation that insurers can’t afford to ignore.

However, as online services become more complex and complex, insurers must develop identity verification protocols to prevent fraud. This will undoubtedly include implementing measures to reduce data collection, as well as adopting new credentialing and regulatory processes.

3: Change with time.

The ongoing epidemic has also changed the nature of fraud, speeding up fraud operations while slowing down others. As insurers add assurance protocols for updated pandemic coverage, they must be resilient, ready to adapt as risks change.

Most importantly, insurance carriers must be prepared to monitor emerging fraud related to mobile platforms. Today’s users are digital-first and mobile-centric, creating software is essential for competitive organizations. As mobile devices continue to be a major target for fraud, insurers must prioritize identity verification and fraud prevention across devices.

In addition, insurance carriers must continue to monitor regulatory changes. public administration.

Insurance fraud is common and expensive. Good methods of verifying your identity are critical to preventing vulnerable people from using fraud to make money. It’s time for carriers to take a serious look at authentication methods that reduce fraud without burdening consumers with burdensome practices that do more harm than good.

Christina Luttrell ([email protected]) is the CEO of GBG Americas, created by Currently and IDologyidentity verification, compliance and fraud prevention for all industries to establish trusted digital identities.

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