Application fraud is a serious issue for the insurance industry, and one that technology specialist SSP is determined to tackle through the introduction of a new behavioural analytics solution.
The rise in B2C solutions and a multitude of trading platforms and devices have highlighted to the consumer the direct correlation between the data they enter and the premium they are quoted for that data scenario.
The SSP solution monitors data input and changes to key risk information, as well as incorporating a device “fingerprinting” solution that will aid the identification of devices being used to obtain cover – enhancing the detection of application fraud, including organised fraud rings and ghost broking.
The industry is forced to tolerate application fraud as it is very difficult to track, trace and root out. Some consumers continue to test out various scenarios from the comfort of their sofa to see how ‘accidentally’ leaving out certain details can reduce the cost of their insurance.
That’s why SSP is introducing a behavioural analytics tool that will analyse consumers’ risk data and flag up to intermediaries and insurers when applicants are suspected of changing their information suspiciously. While this tool will initially be made available through the SSP Pure Broking platform, it is also a key feature of SSP’s insurance company systems asset portfolio.
With recent research from LexisNexis showing that one in four drivers believe motor application fraud is an acceptable way to reduce their premiums, the use of such data analytics will be vital in helping insurers underwrite risk more accurately and hence tackle the growing problem of insurance fraud.
While overall fraud levels dropped by 11% in 2013, the latest CIFAS Fraudscape Report found that insurance fraud rose by 22% year-on-year, with application fraud accounting for more than 90% of all frauds reported to the CIFAS database in 2013.
“This is an important initiative for SSP, and is another example of how we are creating innovative data solutions to tackle market issues and improve trading conditions and performance. The last 12 months have been very busy for SSP, with numerous additions to our asset portfolio, such as NCB and telematics services. We are also committed to delivering the My Licence solution later this year,” said Adrian Coupland, Head of Data Strategy at SSP. “And all of these great benefits are available through SSP’s whole of market rating solution.”