It’s almost a given that, regardless of the industry, fraudsters are working around the clock to find new, more effective ways to do their dastardly deeds. The insurance business is no exception.
Insurance companies and the consumers they serve are certainly no strangers to fraud. In fact, according to the Coalition Against Insurance Fraud, $80 billion worth of insurance fraud occurs in the United States every year.
You heard right. That’s $80 billion with a “b.”
With that kind of money flying out the window and into the hands of criminals, it’s no surprise that insurance businesses are stepping up their efforts to address the latest fraud trends that are gaining momentum across the industry, including:
A Rising Demand for an Omni-channel Experience – Consumers want the flexibility to engage with insurance companies using a variety of channels, including mobile, web, and in-store options. However, providing a seamless experience for consumers across multiple channels gives the bad guys more avenues for committing fraud.
Expanding Mobile Use Among Consumers and Dwindling Brick & Mortar Locations – As consumers are increasingly using mobile devices to shop for and engage with insurance services, insurance businesses are shifting their focus away from physical locations and concentrating more on digital engagement. This is precisely where fraudsters prefer to work.
Increasing Use of Insurance Aggregators – Consumers who utilize aggregators to speed their shopping activities are discovering the many benefits of doing so. This, however, brings even more challenges into the fold for insurers, as they have less data visibility and direct contact with the consumer, among other challenges.
Rapid Proliferation of Ghost Brokers – Ghost brokers, often called “street brokers,” are also finding new ways to cheat the system. By falsely representing themselves as an employee of an insurance company, and then suddenly canceling a policy issued to the consumer, some ghost brokers are causing significant damage to the bottom lines of numerous insurance companies.
To learn more about these and other challenges that are having an impact on the insurance market in 2016, please take a moment to download our latest white paper, “The Evolution of Fraud in the Insurance Industry.”
Even as these developments pose a significant challenge for many insurance businesses, smart implementations of our fraud prevention solution are showing promising results for our insurance customers. By shining a spotlight on each device and analyzing its many unique relationships, we are helping insurance businesses quickly determine if a device is authorized to access an account, as well as its location and history of risk, enabling them to more effectively authenticate trusted consumers and combat online fraud.