As the fight continues, technology is becoming one of the largest answers to solving this problem. Over the course of the last 18 months, technological advancements have meant that insurers and brokers can now be equipped with an array of tools to help stamp out potential fraud.
At the point of quote, for example, there is now the technological ability to check all prospect customers up front before a sale of a new premium has taken place. Brokers and insurers can now check credit ratings, risk scores, bank checks, previous claims and the person’s identity – all helping to ensure the data processed is both true and accurate from the outset.
With new solutions and awareness in the marketplace developing all the time, a lot of headway can potentially be made over the next 12 months to decrease the amount of fraudulent activity. However, whilst the financial services and insurance industry start to combat this issue, one area that still remains unaddressed in minimising the amount of fraudulent claims is the end consumer and the lack of privacy and security they implement concerning/regarding their private data.
Information, in today’s world, is so easily accessible. This is largely down to consumers using social media and mobile technologies as their main method of communicating/purchasing items online; we of course are in a digital era after all. However, consumers need to be aware that whilst using their smart phone/tablet device or chatting online is probably second nature to them now, their personal information (credit information) is more easily accessible to prowling fraudsters.
There is no doubt that fraud is such a topical focus point and will probably, in some shape or form, always be an issue for industry sectors worldwide. For the insurance market however, the approach for minimising fraud needs to comprise of 3 components: firstly, the consumers’ awareness and caretaking of their own personal information; secondly by both insurers and brokers keeping abreast of the latest developments and regulatory information to ensure their systems are modernised to identify fraud from the outset; and lastly, technology innovation.
It is key that whilst there are technological solutions currently out there to identify fraud, technology must always continue to evolve and new solutions developed to ensure that the insurance industry is one step ahead of fraudsters.