HomeNews & IdeasPerspectivesThe Hinge of Fate

The Hinge of Fate

It is said by those who study war that perhaps the most important thing to get right in battle – even more important than outnumbering your enemy – is being able to concentrate your forces at the critical time and place first.  The Germans call this critical focal point for the effort the  “Schwerpunkt”.  Notorious confederate Civil War General Nathan Bedford Forrest called it “Getting there the firstest with the mostest”.

Leaders of underwriting or origination functions for financial institutions (FI’s) will recognize this thinking because they live it every day. For the key to stopping many kinds of financial product fraud is identifying and correcting fraudulent information or a customer’s propensity to commit fraud up front before a product offer is made.  Fail to do so and there’s a high probability that the product will lose money.  And you’d better be able to do so in the minutes the customer spends online completing your application so that when they click ‘go’ you have a response that reflects the facts, not just what they told you. And with more and more customers going online and finding it easier and easier to solicit quotes, whatever you do had better scale.

The problem is that this type of environment:  customers are doing more and more shopping, generating more and more quotes per issued product. They’re also learning how to use the internet to game applications.  And they’re demanding instant decisions. This is an overwhelming challenge for insurers because their systems and processes were built for much lower quote volumes and much longer turnaround times.  Their systems can’t take an end to end view and need a host of people to expedite exceptions. The result is the demand for more and faster decisioning is leading inevitably to deteriorating decision quality and more losses.

And that’s where we come in. We’re VeracityID and we’ve been working with a top 5 global insurer for two years to develop idFusion. Our mission is to focus

This real time, on line point of sale decision requirement means that FIs must identify application inaccuracies, assess fraudulent intent and decide what to do about them in a matter of minutes while the customer is on line filling out the quote form.


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