Insurance aggregator sites overseas are consistently targeted by fraudsters. Are U.S. exchanges next?

According to the Associated Press, federal investigators have discovered some fairly significant security issues within state-run health insurance websites in California, Kentucky and Vermont, which could very well be a sign of things to come. As it stands today, these flaws could allow criminals to get their hands on the sensitive personal information of hundreds of thousands of people.

Fortunately, there isn't any evidence to suggest that information in these exchanges has, in fact, been compromised. However, that certainly isn't the case overseas.

UK Aggregators
The proliferation of insurance aggregators in Europe is perhaps one of the more significant trends in the global industry. Sites such as InsuranceQuotes.com, InsuranceOnline.com and GoCompare.com allow consumers to submit their information (or application) just once and receive quotes from numerous providers. This saves time and money, and the experience is often far more efficient.

Naturally, with aggregators being so popular in the UK, they're also a favorite target for fraudsters.

As more than 80% of customer quotes/leads originate from aggregator sites in the UK, exchanges in U.S. are gaining momentum as consumers become more comfortable with them.

U.S. Exchanges
Created under President Barack Obama's health care overhaul, insurance exchanges are online marketplaces where people who have no health insurance through their jobs can buy government-subsidized private coverage. As luck would have it, only a dozen states operated their own websites this year, while rest have either opted to use the federal exchange or jointly operate their exchanges with Washington.

With this new discovery of security flaws in state-run exchanges, it's clear that, for aggregator sites in the U.S. to rise to the same level of prominence as their UK counterparts, much work needs to be done to both safeguard sensitive customer information and guard against fraudulent activities.

At iovation, with our Customer Authentication and Fraud Prevention services, we're continuing to help insurance organizations do just that

Just in Time for BIBA
Talk about timely developments in the news! Coming up in May, we'll be making our debut at the BIBA ​(British Insurance Brokers’ Association) event in Manchester, England. You can bet that we'll be discussing these and some of the other challenges insurance organizations around the world face today.

If you're planning to attend, don't miss Tristan Prince, iovation's Business Development Manager, as he discusses Improving Loss Ratios and Reducing Operational Costs Through Device Reputation.