Trevor Cutts on the front line against fraud
Fraudulent claims cost the industry up to £1.9bn a year, adding an average of £44 to policyholders’ premiums.
Data verification of customers is the latest initiative to spread across the insurers’ and brokers’ market.
Postcode information, the electoral roll, licence verification and credit checks can all help insurers and brokers to reduce the volume of fabricated application details, identify customers assuming a forged identify to make financial gain and spot fraudulent payments.
This will not only help to stamp out fraud, but enhance the information insurers and brokers have access to.
As well as protecting the consumer, verification shields insurers’ loss ratios and helps them better match their risk profile with their premiums.
Trevor Cutts is director of 1 Answer Network
Read about our initiative to combat fraud – the Insurance Times Fraud Charter – here.
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