Fighting Fraud and Streamlining User Journeys with Biometric Authentication
As an insurance company, it’s not just your policyholders who need protection – you do, too. First, you have identity fraud and application fraud to contend with, both of which can lead to huge losses for your business, reputation damage and expensive legal proceedings. Second, in today’s highly-competitive online market, you need to be creating digital and mobile customer experiences that are 100% frictionless if you are to onboard more legitimate customers, and keep existing ones loyal. The solution to both issues lies with advanced, biometric identity verification technology, allowing cloud-based online (including mobile) onboarding to verify genuine customers in a secure, non-intrusive way at every step of the digital customer journey.
The Rise of Insurance Identity Fraud
Insurance identity fraud has become a massive problem for the industry over recent years, and an additional headache for Chief Executives, IT Directors and Security staff. In 2017, data from Cifas, the UK’s leading fraud prevention agency, revealed that insurance identity fraud had soared 10,250% in the first half of the year compared to the same period in 2016.
Fraud experts at Cifas explained that fraudulently obtaining insurance policies in someone else’s name was a new trick being used by criminals in order to steal from them. “These cases of identity fraud are often related to ‘ghost brokers’, the term given to individuals fraudulently acting as an intermediary for people seeking insurance,” said Cifas. “A ghost broker submits applications using a victim’s personal information in order to increase the chances of the insurer offering a quote for a policy.”
For the full year, insurance identity fraud rose 1,600%, according to figures from Cifas in its 2018 Fraudscape report.
(Image source: cifas.com)
Fake Ids, identity theft, and insurance identity fraud costs the insurance industry $80 billion a year in the US, with an estimated £3 billion of fraudulent insurance claims being made in the UK annually. These costs then inevitably get passed on to policyholders in the form of higher premiums – reducing customer satisfaction, damaging brand reputation and ultimately customer lifetime value.
As a result of organisations not investing in more robust technological solutions for identity proofing, profits are being negatively affected, and opportunities to improve customer retention and loyalty are being missed.
The stakes, indeed, couldn’t be higher for insurance companies, who have a vested interest in consistently and accurately verifying that all of their clients are exactly who they claim to be. Advanced biometric identity verification technology is the only real solution to today’s urgent Know Your Customer (KYC) requirements in this increasingly threat-filled landscape.
Identity Verification Solutions and Advanced Biometrics
No matter which type of insurance you provide – auto, life, health, property, or speciality – accurate identity authentication is a must in order to both prevent fraud and streamline the customer experience.
Today’s consumers have high demands for speed and convenience, and expect to be able to apply for insurance and submit claims online and on mobile. Any obstacles along this path that frustrate the customer journey – even something as simple as signing a contract – can result in a lost sale or a lost customer. At the same time, however, you also need to ensure that both your customers and your business are protected from the ever-present risks of insurance identity fraud.
TOC ID Verification has solved the problem of identity authentication in the insurance industry with the world’s most sophisticated suite of advanced ID verification solutions. TOC ID Verification’s trusted Digital Signature and Facial ID Verification solutions go way beyond basic identity matching to verify online and mobile customers, convene crucial ID documents in an instant, and remotely authenticate users, ensuring a better customer experience, while simultaneously preventing fraud.
Our powerful biometric ID verification service – based on cutting-edge neural network and deep learning technology – captures customers’ biometric data in order to create unique digital templates for genuine customers which are then stored securely in the cloud as a mathematical construct. This enables insurance companies to accurately authenticate that it is the correct person – and not just the correct device – requesting access to online and mobile services.
(Video source: youtube.com)
To meet the identity verification challenges today’s insurers face, TOC ID Verification uses cutting-edge AI-powered face-matching technology and tokenised verification to make the remote ID authentication process quick, easy and safe. Easily accessed by our cloud API and incorporated into user-friendly applications, with TOC ID Verification, insurers can now provide the world’s most secure biometric “selfie” authentication into the identity verification process at all stages of the customer journey.
TOC ID Verification offers the most advanced and accurate biometric authentication system available to insurance providers today. Our solutions are designed from the ground up to combat insurance identity fraud, and provide the most efficient and effective solutions of onboarding customers and accelerating digital journeys. Get in touch today.