You probably know the oil industry’s “fracking” story: everyone knew there were huge reserves of oil tightly locked in shale rock. They ignored them because the cost of producing that oil exceeded its value. Until an innovator paired new technology with techniques that radically reduced the unit cost of extraction, inventing “fracking”. The rest is history.
Auto insurance rate manipulation and fraud has a lot in common with tight shale oil. Carriers have long known that there is significant fraud in their books – it has traditionally been estimated at 15 to 20 percent. Obviously, the carrier who could figure out how to eliminate this cost could gain a huge edge. But almost all of this fraud is “small ticket” and until now it hasn’t been economical to pursue most of it. But like with fracking, someone has paired advanced technologies with new techniques that radically lower the unit cost of defeating small ticket frauds.
That company is VeracityID