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Rate Evasion Detection and Resolution

Up to 10% of applications contain rate evasion indicators. idFusion solutions attack these risks using multiple tools that identify missing drivers, questionable garaging addresses and other changes that impact rate. These tools induce applicants to provide truthful information or failing that, apply sufficient ‘friction’ to discourage fraudsters before a policy is bound.

One possible combination of idFusion tools that accomplish this goal is shown below:

idFusion idFusion receives carrier-supplied application and third party data via one or more web service calls during active transactions. idFusion applies advanced entity resolution solutions to resolve identity, address and other possible data conflicts, and then fuses new information with carrier history to drive a resolved customer identity and data set for further analysis.
idRuleEngine idRuleEngine identifies applications where the number of vehicles is unusually large relative to the number of listed drivers.
idQuoteMonitor idQuoteMonitor identifies when prior applications, quotes & claims suggest there are additional drivers living in the household.
idGetData idGetData may be invoked by rule when threshold risk conditions are met, and additional third party data is required (e.g., householder lists, driver or registration records, phone number or IP ‘ownership’ or activity).
idResolve idResolve is then invoked to resolve the issue(s) identified during an active customer or agent online session. Customers may be asked to include/exclude drivers, identify/attest to reasons for multiple vehicles, conflicts in addresses and other steps by answering scripted questions and attesting to their veracity via an eSign process. idFusion returns ‘repaired’ application files, documents and attests, and rules-based actions (e.g., payment or policy terms restrictions) to the carrier for decisioning and processing.

VALUE IMPACT

• Up to 10% of direct business shows rate-impacting driver/address manipulation of some kind.
• Multiple changes are themselves risk indicators – even if not on issued policy.
• Average premium impact $400-$500/policy.