In the wake of the cost of living crisis, new research shows a significant minority of financially stressed customers are contributing to a material increase in fraudulent claims. In this article, we explore how leading insurance companies are repositioning and repurposing their existing and emerging digital strategies to help address the rising risk in the claims process.
As the cost of living crisis deepens, many consumers struggle to balance the demands of escalating expenses with rapidly diminishing financial resources. Their resulting budget allocation and repayment prioritisation behaviours present the insurance industry with a series of key challenges around acquisition and management.
Due to a dramatic increase in potentially fraudulent claims as a means to raise funds, the efficiency and effectiveness of the claims process are coming under increasing pressure and scrutiny.
45% increase in home fraud
11K in fraud claims worth more than £122m
Aviva news release 2022
The rise of digitally-empowered consumers over the past three years accelerated the digital transformation of the insurance industry and heightened expectations around customer experience.
Whereas most leading insurers have succeeded in digitising acquisition and engagement, most agree there’s been insufficient progress in enhancing the claims experience. Although acquisition and management are critical to business growth, retaining valuable customers is essential for long-term, sustainable profitability.
Now, the limitations of the traditional claims process are compromising the positive experience of genuine claimants while failing to capture the rise in potentially fraudulent or inflated claims.
Most insurers agree on the business value of a positive claims experience:
61% of insurers planned to invest in new technology to support claims in the next 12 months. 91% of insurers said, “boosting the customer experience is my primary claims goal.” 68% agreed, “out of all of the functions within an insurance company, claims has the greatest need to modernise.”
The 2021 Intelligent Insurer’s Claims Survey
An insights-driven, automated software solution adds value across the claims journey — from first notice of loss to final settlement — by bolstering business efficiency and enhancing customer experience.
Programmed to remove subjectivity from the assessment, intelligent algorithms and machine routines use enhanced data to quickly assess the validity of a claim against industry, open source, proprietary bureau and individual claimant datasets to quickly achieve three outcomes:
The deep data capabilities of the TruValidate suite of solutions can simultaneously reveal anomalies in claim documentation, device, identity or potentially fraudulent behaviours for further investigation — and help mitigate the emotional distress of a valid claim.
Contact your TransUnion representative to learn more about how TruValidate can help you improve and accelerate the processing of valid claims while reducing the number of false positives and negatives.