Preventing fraud at the outset, when the customer first provides their details, brings clear benefits. It means eliminating potentially troublesome policyholders, avoiding costly investigations and can negate the problems of potentially instigating a prosecution if there is a disputed claim.
There is no doubt that the fight against fraud is now far more focused on effective validation at an early stage. But, while this appears common sense, it is far from an easy battle.
Effective validation needs a measured approach. Insurers and brokers must be prepared to turn business away and invest in more resources. There needs to be better data and more staff training. It could well mean short-term pain for long-term gain - but who is up for the challenge?
Post, in conjunction with leading insights expert, Equifax, conducted exclusive research into attitudes and strategies to prevent ‘point of application' fraud. Almost half of those surveyed were general insurers (47.3%), with the remainder being mainly personal and commercial lines brokers and affiliated professionals. They included both large and small firms.