Experian, a leading global information services company, has announced its solution to the growing illegal business of insurance fraud, suggesting that insurers use online tools and data analysis technology instead of traditional, error-prone methods.
Fraud in the UK is a growing billion-pound illegal business with fraudsters finding new and inventive ways of targeting weaknesses in data systems. Insurers are far from immune. Indeed, the latest estimate from the Association of British Insurers is that insurance fraud costs £2 billion a year, adding, on average, an extra £44 a year to the insurance bill for every UK policyholder.
Nick Mothershaw, Director of Identity and Fraud at Experian, said: “Over the last five years insurance fraud has risen fast and deceptions become ever more devious. It has never been so important for insurers to have the latest techniques and technologies in their armouries to help protect themselves and their customers.”
Online tools enable insurers to investigate individuals under suspicion of fraud in real time, with access to a range of data sources. The most sophisticated tools allow access to a comprehensive range of household, motor and personal injury insurance claims, vehicle information, motor insurance policy details and linked addresses.
At Experian, the data, technology and expertise that is offered has helped many insurers become more sophisticated in how they combat fraud. They increasingly require robust tools to verify the identities of those they are dealing with as well as strong anti-fraud measures at the point of application and claim.
Traditional methods of identity checking can be time-consuming, costly, error prone and an inconvenience to customers, often resulting in a drop-off. Also, the results generated are not standardised, so insurers can’t compare like with like and get the complete picture. Thus, this process takes time and leads to inconsistent decisions.
Experian’s Identity Solutions for Insurance offers bank account verification in real-time at point of quote, sign-up and claim. The Identity Solutions also allow insurers to pick and choose what elements they want to check, combine the results and see the complete picture of a client’s identity.
Investigating customers who represent a potential for fraud is time-consuming and complex. By accurately assessing risk at the earliest opportunity Experian’s fraud solutions for Insurance identify fraud at the point of policy. The fraud solutions can also help identify fraud networks within the current customer base, and help identify:
-Fronting
-False Payment Details
-Use of stolen identity to obtain policy
-Use of stolen/forged documents
-Undisclosed Claims/ Convictions/Voidance
-Occupational discrepancy
-Staged Accidents
The fraud prevention solutions support a continuous cycle of fraud prevention, detection, investigation and improvement. An audit log of all significant actions performed by both system and users is kept, making it easier to ensure best practice and reduce any misuse of the system.
Experian’s Payment Solutions can also help insurers realise the competitive differential of using Faster Payments for claims payments and can identify if a claimant’s bank account genuinely belongs to them and is able to receive a faster payment.
Via EPR Network
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