Security News > 2023 > June > Virtual claims raise alarms among insurance carriers and customers

As the digital revolution changes the claims process, both carriers and customers are increasingly concerned about data privacy, according to LexisNexis Risk Solutions.

"Especially among younger age demographics, digital claims channels are becoming increasingly popular, but growth in self-service options among insurers absolutely must be met with investments in tools to mitigate digital identity fraud. Insurers with a multi-layered approach to mitigating digital identity fraud experience fraud costs that are 25% lower than those who do not, according to our research," added Sheehan.

Identity-related fraud among insurance carriers on the rise.

Insurers with more robust capabilities can identify fraud earlier in the claims process.

Top 20 carriers predominantly find identity-related fraud at First Notice of Loss; in comparison, whereas top 21-50 carriers find it at investigation.

"With digital channels here to stay, the carriers who emphasize digital identity fraud mitigation by capturing disparate digital, physical and behavioral data points for a dynamic view of the customer are better positioned to weather potential profitability, brand reputation, and customer retention and acquisition concerns at the point of claim," concluded Kumar.

News URL

https://www.helpnetsecurity.com/2023/06/05/insurance-identity-related-fraud/