Verisk Insurance Solutions – Underwriting, a unit of Verisk Analytics, announced the availability of automated screening for fraud and premium leakage in new auto insurance policies.
The technology will allow insurers to run Verisk’s RISK:check Point of Sale fraud model on every new policy record contributed to Verisk’s Coverage Verifier database. This process represents a significant change from current industry practice, which typically focuses on catching fraud at the time of claim. By screening new policies, insurers are better able to identify fraud and rate evasion while they still have an opportunity to take action. Industry estimates put total losses due to fraud and rate evasion between $12 and $24 billion, annually.
Insurers have long recognized the need to address fraud and rate evasion earlier in the policy life cycle. But the technology hurdle of integrating new underwriting models has sometimes delayed implementation. The new technology will allow insurers to proceed quickly with minimal effort and with virtually no IT impact. Originally launched in December 2012, RISK:check Point of Sale uses a model that combines big data with sophisticated analytics to detect patterns of behavior closely correlated to fraud and rate evasion.
“Most insurers are already contributing their policy data to Coverage Verifier,” said John Cantwell, vice president of auto product management, Verisk Underwriting. “By using this service, they can begin screening their new policies almost immediately. The beauty of our solution is that there is virtually zero implementation effort and insurers can immediately take advantage of a cutting-edge point-of-sale fraud tool.”
“Verisk is in the unique position of offering an industry-leading fraud solution by using data that insurers already provide to Verisk,” added Cantwell. “The speed to market for insurers can be very rapid. Our own studies show that insurers who implement the solution will improve their new-business loss ratio by 3 to 6 points.”
Source: Verisk Insurance Solutions – Underwriting
Was this article valuable?
Here are more articles you may enjoy.