Consumer experience is top of mind in today’s digital world. From new business sales to policy renewals, you put great effort toward providing a smooth, personalized journey that attracts new customers and inspires loyalty. However, as the cost of fraudulent investigations, claims and payouts continues to grow, you may find yourself striving to find the right balance between protecting your business and ensuring a safe, seamless consumer experience. Even with billions of dollars lost each year, the decision to slow processes for high-value consumers in order to stop the comparatively small percentage committing fraud is difficult to justify. So, the question effectively becomes:
What is a smooth verification process truly worth?
Newly available tools and solutions that improve preventative measures are closing the gap between keeping your business profitable and staying ahead of growing fraud. Here are four questions you should be asking when evaluating how effective your anti-fraud technology is.
- Is your current approach to combating fraud proactive or reactive?
- Do your fraud mitigation efforts start prior to first notice of loss?
- Are you verifying self-disclosed information about the applicant during the new business application process?
- Are your sources for risk verification up-to-date and accurate?
Many carriers are still attempting to address the issue of fraud late in the game — when a claim occurs. Whether a carrier’s decision not to assess an applicant thoroughly during new business underwriting is due to ineffective tools or the desire to take in short-term revenue, the result is higher risk in the long term. The use of insurance prefill, and identity and risk verification tools can render real-time decisions to help smooth application processes and avoid unnecessary investigative costs and payouts later.
No one wants to slow the process for the overwhelming majority of consumers in order to guard against the small minority of potentially bad actors. With continued profitability in mind, your most cost-effective strategies should start early and be comprehensive. The core capability of an effective, proactive approach to fraud mitigation is one that allows you to connect identity information across disparate records. Access to continuously updated, in-depth insight into identities, devices, addresses and vehicles, as well as other identities associated with each insurable asset and address, can help carriers outmaneuver potential risks while continuing positive engagement.
For more information about TransUnion’s fraud mitigation solutions, including prefill and identity and risk verification tools, contact your TransUnion representative, email firstname.lastname@example.org or call 866-922-2100.