Everybody talks about underwriting insurance fraud but nobody ever does anything about it. Until now. – John Macauley
Property & Casualty insurers know they have major fraud problems (For example, in auto fraud and misrepresentation are estimated to cost roughly 20% of premiums). But most of the fraud is relatively small dollar and must be detected and resolved in a few minutes. This was deemed impractical and so carriers largely accepted the fraud as a cost of doing business. That is until VeracityID’s idFusion platform was introduced. idFusion is software as a service that allows carriers to identify, intervene and resolve a wide range of costly fraud events up front in the few minutes before they bind a policy. And today we’re announcing a major addition to our fraud fighting arsenal.
The TrustMark Predictive Fraud Risk Scoring Solution
Using AI Machine Learning techniques, we have created an operational fraud risk scoring model that predicts the likelihood that a given customer will commit fraud during the life of their policy. “TrustMark” is the industry’s first effective operational fraud risk scoring model that can be integrated into real time high speed quote and application workflows.
How it works
idFusion runs in parallel with a carrier’s underwriting system, receiving the same customer information the carrier has, applying a host of tests for fraud indicators. TrustMark takes this data and the customer behavior observed during the quotation process to generate a fraud risk score that can then be used to trigger additional tests and queries.
How it benefits insurance carriers
Carriers would like to find ways to identify and deter fraud but their zeal is tempered by a recognition that customers won’t tolerate long, invasive interrogation. TrustMark, by scoring customers by fraud risk while they are in the quote process, allows carriers to single out the customers requiring more scrutiny without inconveniencing the rest.
KOther key TrustMark benefits:
- TrustMark gives carriers a tool to grade their agents, channels and segments by the level of fraud risk they attract or repel.
- By stripping out the ‘wild card’ high fraud risk customers, TrustMark helps carriers improve their risk selection precision for the rest of their book.
- As with all of idFusion, TrustMark offers carriers a more profitable way to target new markets and channels avoiding the common losses that ‘new entrants’ experience. Indeed TrustMark was engineered in the online direct channel so it is effective even in that high velocity, high risk segment.
- TrustMark and idFusion offer carriers a way to profitably identify the low risk business that hides in every high risk segments.
It’s not enough to simply ID the high risk customers, carriers
need an mechanism to immediately intervene in a quote session to
show the customer that ‘we are watching’.
Combining TrustMark with idResolve
So what do you do with a customer that has a high fraud score? When a customer is scored as a high risk, our user managed intervention system – idResolve – pushes notifications, queries and requests into the customer or agent web session. This allows carriers to acquire clarifying data, documentation and exclusions without changing core system flows.
TrustMark is a significant addition to the idFusion Platform, enabling carriers to carefully target their fraud detection efforts at customers with the highest risk while letting the others rapidly flow through the process. Like to know more? Contact us at Info@veracityid