One of the many challenges facing the insurance industry today is being able to identify and effectively investigate high-risk claims and applicants while fast-tracking customers with low risk in order to meet or exceed customer expectations. Watch the OnDemand webinar on how voice technology is being used to improve the customer experience by identifying the 90% of low-risk policy applicants and legitimate claims, while enabling resources to focus on the 10% that are high risk.
Welcome to an AC Global Risk webinar, our topic for this webinar is “How the Power of Voice is Accelerating Underwriting and Reducing Claims Fraud”. Let’s dive into the agenda for today.
With that I would like to introduce our speakers today, we have Alex Martin who is the CEO at AC Global Risk and we also have Jay Sarzen from the Aite Group. Jay I’ll let you take it from here.
Thank you, Matt. First, I would like to thank you for joining us today. I am going to jump right in by giving you the Aite view of what’s happening in fraud in terms of life insurance and in terms of P&C insurance.
Starting with life insurance, a recent study we did reported that 83% of life insurance carriers are seeing an increase in fraud. There are a lot of elements involved in that increase so let’s take a look at the 4 key elements from that study.
First is the Human influence, we have an aging population, increased healthcare costs, increased digital channels, and a movement to simplified issue. With the increased digital channels comes the biggest challenge. It becomes very difficult for carriers to navigate because in conjunction with the simplified issue, these applicants are not being touched as much as they were in the past, in terms of blood drawing, and actual person to person contact.
We gagged on fraud attacks by asking carriers where the biggest amount of fraud was coming from and the result was no surprise. 87% of it was coming from the application process for life.
When we asked about their strategy and organization to deal with fraud, an overwhelming number of the respondents said that 77% said that their strategy and organization was decentralized. There was nothing cohesive at the top leading the charge against fraud. Only 13% have a governed strategy. Which was shocking to me. But I think the bigger point I want to make here is that almost three-quarters of the carriers are only slightly to moderately confident in their strategies. So clearly, we have a lot of people that are nervous in the service when it comes to carriers in life insurance. Probably with good reason.
Moving to Technology support. What we are finding here is that there are very few tools being used and the ones in use are mostly in house developed and might not pass muster in the real world. Legacy systems are a challenge for any insurance company to get through and life insurance carriers are no exception. We have the problem of data, too much of it. So, what we mean when we say data crippled, we mean that these insurers are swimming in too much data and they are not able to make sense of it. What we found that the biggest most problematic issue is that there are just too many points of entry. Whether it is on text or phone any individual, any fraudster that is looking to deal with a life insurance carrier there are too many points of entry to probably identify them as a fraudster............ Fill out the form above to read the rest of the transcript.