ATLANTA, September 22, 2021 / PRNewswire / – New Insurance Industry Research Finds Insurance Companies Have Seen An Increase In Consumer Digital Activity In Both Underwriting (77%) and Claims (76 %) during the coronavirus pandemic and indicated that this recent surge in digital activity has in turn spurred more identity fraud activity, according to 67% of survey respondents. Written by Aite-Novarica Group and presented by LexisNexis® Risk Solutions, a leading provider of data, advanced analytics and technology for the insurance industry, the Insurance fraud: rethinking approaches in the digital age The report provides guidance to carriers on how to identify vulnerabilities and how to mitigate those vulnerabilities, while delivering the ultimate customer experience to real consumers.
The survey focused on identity fraud prevention experts and policy makers from US insurance companies in the life, personal (auto and home) and small business fields. Attendees were asked to identify recurring entry points for fraudulent individuals / activities and share their thoughts on how carriers can better protect their underwriting, customer service and claims transactions without hampering the digital experience. . The study finds that as insurers seek to meet their digital transformation business goals and place increasing importance on the customer experience, they should assess their underwriting, fraud prevention strategies and capabilities. customer service and complaints, which must include the implementation of a multi-layered and comprehensive system. fraud mitigation strategy.
“Our experience shows us that the main drivers of identity fraud for insurance are a combination of purely digital transactions and the increased availability of consumer data, whether on the dark web, social networks or portals. consumers online across industries, “said Kim brown, Director, Insurance Identity Access Management Solutions, for LexisNexis Risk Solutions. “Even as consumers opt for digital interactions, they still expect their policies, accounts and transactions to be protected against fraud. Likewise, some operators expect digital business to continue growing over the next 12 months and therefore need to invest in advanced identity verification. and fraud mitigation solutions to keep their business and customers safe. consumers with confidence “.
Cost of improved customer experience
As digital carrier interactions improve the customer experience and create deeper customer relationships throughout the life of a policy, 67% of insurers surveyed said the increase in digital transactions has led to an increase in fraudulent activity. The most common entry points for identity theft among property and casualty carriers are:
- Subscription or at the time of request
- Customer service or at the point of account
- Complaints at the point of payment
Adopt a multi-level fraud strategy
Many types of solutions have emerged to help protect identity and online accounts, but the level of adoption among operators varies. While multi-factor authentication is widely implemented across all lines, more advanced fraud mitigation solutions such as digital fraud risk scores and link analysis remain underutilized. Aite-Novarica recommends using a combination of solutions that specifically address the risk of underwriting, customer service and complaints fraud to complement existing customer solutions and address any additional vulnerabilities. According to the report:
- 73% of operators are currently using multi-factor authentication, citing its increased accuracy in identifying fraud as well as its benefits to facilitate compliance, deployment and efficiency.
- 70% use one-time passwords, especially life and small commercial carriers who have noted its effectiveness.
- 67% use passwordless authentication, which is the best solution to reduce underwriting and claims fraud.
- Only 58% of operators use link analysis and 54% use digital fraud risk scores, underscoring the need for more exploration and investment by many operators.
Aligning solutions that can provide identity verification and authentication can help carriers avoid unnecessary risk and provide real consumers with a faster, low-friction experience. Being able to systematically isolate the highest risk, carriers can now make better decisions throughout their workflow and defend their brand and customers against cybercriminals and potential fraud.
“In order to strengthen their defense against fraud throughout the police lifecycle, operators need to ensure that their solutions accurately identify and prevent fraud right at the point of entry, which will require multiple capabilities and a multi-layered approach, “said Michel trilli, practice manager, insurance, for the Aite-Novarica Group. “For carriers evaluating their current fraud strategies, I recommend looking for ways to merge data from multiple sources, combine fraud solutions to validate identity verification, and adopt processes to authenticate and escalate all potential security risks. “
The report makes five recommendations to help carriers stay ahead of fraud before it affects their bottom line:
- Recognize that the evolution of digital activity between carriers, agents and consumers has become the new normal, and you have to grow with it.
- Don’t overlook the current increase in fraud – address them before they lead to higher claims costs, strained operations and damaged consumer relationships.
- Bridging the capacity gap by implementing more advanced fraud prevention solutions.
- Take a layered approach with multiple solutions for stronger defense as no single technology will adequately detect and prevent fraud.
- Distribute investments in functional areas to make sure your clients are protected throughout their policy lifecycle.
To read the full report on Insurance fraud: rethinking approaches in the digital age, Click on here.
Visit LexisNexis insurance fraud solutions to learn more about the company’s identity access management and fraud prevention offerings.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of advanced data and analytics to deliver insights that help businesses and government entities reduce risk and improve decisions for the benefit of people around the world. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquarters in the metro Atlanta, Georgia, we have offices around the world and are part of RELX (LSE: REL / NYSE: RELX), a global provider of information and analytics for professional and business clients. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
About the Aite-Novarica Group
Aite-Novarica Group is a consulting firm providing essential information on technology, regulations, strategy and operations to hundreds of banks, insurers, payment providers and investment firms, as well as technology providers and of services that support them. Comprised of former senior technology, strategy and operations executives as well as experienced researchers and consultants, our experts provide practical advice to our clients, leveraging the in-depth knowledge developed through our extensive network of clients and others. industry contacts. Visit us on the the Web and connect with us on Twitter and LinkedIn.
LexisNexis risk management solutions
Brodeur Partners for LexisNexis Risk Solutions
View original content to download multimedia:https://www.prnewswire.com/news-releases/new-identity-management-study-from-lexisnexis-risk-solutions-and-aite-novarica-group-reveals-increase-in-fraud-as-industry- reports-uptick-in-digital-transactions-301382860.html
SOURCE LexisNexis Risk Solutions