Last week at InsureTech Connect in Las Vegas, Aite Group hosted our inaugural Fraud Roundtable and Networking event. In attendance were life and property and casualty (P&C) carriers that came together with a common purpose: to discuss application and claims fraud. Our intention was to spur active discussion about the human element of fraud, explore ways to identify it, and discuss strategies to prevent it. We focused on three main categories of fraud detection and prevention with our event sponsors and carrier panelists:
- Biometrics and Voice Analytics with AC Global Risk: AC Global Risk described how voice analytics at the point of sale or claim reporting can help carriers detect fraud. Its system analyzes the voice patterns and stress of the caller and identifies those vocalizations that seem out of line with the baseline model, requiring additional follow up.
- Telematics and Data Analysis with Zendrive: Zendrive discussed how telematics can help verify vehicle location, time, and conditions at the time of loss. Its solution uses data to match the facts of a claim with the actual claim, and its system helps find stolen vehicles and verifies vehicles involved in losses.
- Identity Verification/Authentication with MIB: MIB specializes in making sure that the life insurance policyholder matches the claimant. Its solution gives carriers the ability to properly identify insured policyholders and claimants and verify them throughout the claim. This technology helps prevent fraud in life insurance and can benefit P&C also.
The hour-long discussion was incredibly active, informative, and collaborative among carriers and vendors that led to three outcomes every carrier should consider with its fraud and IT strategies:
- No individual technology will stop fraud by itself. Fraudsters are smart, and you should use every tool at your disposal to make sure you slow them down and catch them. Carriers must find multiple fraud solutions to apply at various stages (or gates) of the application and claims process to have the best chance of eliminating fraud.
- Fraud is a cross-industry problem that requires working together. Carriers do not need to fight this problem on their own, as fraud is a problem that affects the entire industry. Companies must work together to identify fraud schemes and pool resources when necessary. When it comes to fraud, sharing ideas between life and P&C carriers has merit.
- The insurance industry needs to do more to educate and engage consumers. We discussed the impact of “soft fraud” and how consumers have a hard time seeing the value of insurance, which leads to justification of inflating an estimate or adding some minor content. Carriers recognize that if consumers don’t understand the impact of fraud, then they will have no incentive to stop it.
If we are going to prevent human fraud and make “pay and chase” passé, then we all have work to do—but we can do it together! We would like to thank our sponsors and everyone who attended this year, and we can’t wait for next year!