Social psychologist Dan Arielly is an expert on small time customer ‘cheating’. He literally wrote the book on it entitled xxxx I strongly recommend it. The most important thing Dan discovered about petty cheating is that a significant proportion of a customer population will routinely cheat – but only a little bit. He goes on to identify a number of other generic variables that influence how much leeway a customer feels he has to cheat. So we at VeracityID wondered whether his model applies to the problems we target: auto insurance fraud in particular at the point of sale. Because we have been working with world class insurers for three years to understand this class of frauds to develop software tools to defeat and deter it during the few minutes of the typical auto insurance quote session.
There are four reasons why auto insurance customers are cheating more at the point of sale . Understand why customers cheat is essential to deterring and deter a problem that costs carriers more than ten percent of their net auto premiums written. Just to be clear: we are focused on the petty frauds that typically happen up front during underwriting and binding, anything from fudging data to save a couple of hundred dollars off of a premium up to a few thousand dollars gained from submitting a preexisting damage.
Customers commit petty auto insurance fraud because:
Nobody is watching, – –> instant confront and define it as cheating
Nobody is watching – rate discovery – by submitting multiple quotes that vary key data to generate a ‘better’, lower premium. Asking an agent to do this means admitting they are thinking of fraud. While online…well idQuoteMonitor
Token It doesn’t feel like cheating because it’s data, not dollars. –> Instant confront and define
Justified retaliation for the carrier’s unfair rate increase. –>Instant confront and define
Shifting Norms – Obamacare eliminated the exclusion of preexisting condition exclusions for health insurance so customers’ new norm is that it’s OK to submit preexisting damage claims. Restate the PC norm and require images