Insurance Fraud in the Age of Digital Advancement
As with many industries, the insurance sector has not been left untouched by the digital revolution. With every passing year, more transactions and interactions are taking place online, and while this shift offers exciting opportunities, it also comes with new challenges. Are you aware of how your organisation is tackling these issues?
Customer Convenience and Rising Fraud Risks
The rise of digital platforms in the insurance sector has undeniably improved customer experience. With these advances, there's also been an uptick in fraudsters exploiting this digital arena. Recent data even highlights a 31% increase in staged accidents, making it the top type of insurance fraud. The dilemma for insurers: how to offer top-notch digital services without letting security fall.
Insurance companies are stepping up to these challenges with powerful countermeasures, such as identity verification checks. The proof is in the pudding: pilot results reveal that of the 5% of personal injury claims with a mismatched National Insurance Number, 20% raised eyebrows after ID checks, and further investigations confirmed a shocking 70% as fraudulent. It’s clear - identity verification is effective in tackling against insurance fraud.
With innovative tech, insurance companies are not just meeting these challenges head-on but also turning them into opportunities to enhance customer service. Tools like Sherlock Alert, designed to detect fraudulent claims by analysing data shared between an insurer and the Compensation Recovery Unit (CRU), allows insurance companies to provide a seamless customer journey while keeping fraud at bay.
With over 20 years of supporting the UK insurance industry, CRIF brings an unparalleled level of expertise to the table. As a provider of the Claims and Underwriting Exchange register (CUE) and a leader in combating fraud through identity verification, we have been at the forefront of creating innovative solutions that help insurers not only survive, but thrive in the digital era.
Our full article encapsulates our findings, insights, and knowledge, providing a valuable resource for any insurer looking to stay ahead in this ever-changing landscape.
So, how well-prepared is your organisation?