Getting a deeper understanding of the customer at claim

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CM 09 March 2022 Spon Art LexisNexis Risk Solutions

Stuart Goldsmith is a senior product manager at LexisNexis Risk Solutions UK and Ireland

Customer data management and identity management solutions are designed to complement the insurance market’s existing counter-fraud armoury, and could provide the crucial piece in the jigsaw in understanding fraud risk before a claim is settled

A more digitised claims process has obvious benefits, such as an improved customer experience, quicker claims settlements and streamlined, more efficient claims processes. The pandemic has certainly provided the catalyst for an acceleration in claims digitisation. Almost overnight, insurance providers needed to shift their operations to accommodate claims staff working from home and customers who needed to socially distance.

A key part of the delivering a seamless and secure claims experience is truly knowing who the customer is, by linking together all known information about the claimant across different lines of business and policies, while also getting better understand of their propensity to commit fraud, given the market’s ongoing battle against claims fraud. Is the customer who they say they are, and do they have any past patterns of claims behaviour that should raise concern?

The challenge has been making the process swift and frictionless for claimants, the vast majority of whom will be genuine and simply want their claim paid and to move on with their life.

Customer data management and identity solutions have emerged to allow insurance providers to more quickly process claims from verified parties while adding appropriate review processes for high-risk claims.

It is already well-understood that tackling fraud takes a multi-layered approach and insurance providers need to act on the prospects of fraud across underwriting, customer service, and claims.

That means truly knowing who you are dealing with at any touchpoint a customer has with your business—not just at claim—leveraging all the data currently held on that individual, wherever it is held within the business, whether it is quotes, renewals, claims or marketing. For example, if a household claim is being managed, it might be useful to know if the same customer had a motor insurance claim with the brand three years previously, or perhaps that they had recently contacted the business for a pet insurance quote, or a renewal has just been issued for a van policy. 

Patented linking and clustering methods can now help insurance providers link all their data assets together. This means one ‘true’ record can be created for one customer using a unique identifier—LexID® for Insurance—giving insurance providers a consolidated view of their customer based on every contact or policy they have had with that person. This then creates the foundation for all future dealings with that customer—not least at claim.

Crucially it also means that when that core customer data is enriched, perhaps with market-wide claims history data for motor, household or commercial, claims professionals can be fully confident the right data is being attached to the right individual.

The next step is verifying their identity at point of claim, by creating an automated and friction-less hygiene-check process to confirm the claimant is who they say they are and furthermore, that they haven’t been linked to recent fraud. Recent innovations in identity fraud detection now mean insurance providers can leverage intelligence linked to the applicant’s email address. In fact, of all the pieces of data provided by the customer, email address can now be one of the most powerful in detecting fraud.

Email is a unique global identifier and an integral part of everyday life. Above all, an email address is one of the most commonly used components of an online transaction and therefore unlocks digital engagement and transactions in every industry.

LexisNexis Emailage Rapid is built from billions of transactions from global payment processors and other online industries, including 82,200 fraud events shared on average daily, to provide an instant risk score*. The score indicates a genuine identity, whether the identity has previously been linked to fraud or whether it could be a fraudulent ID. It provides additional metadata points, such as whether the email address and domain even exist, when the email address was first seen, or whether the email address bears a close resemblance to the proposer’s name for the policy. 

In the fight against insurance fraud, email address intelligence-based risk scores can enable insurance providers to deliver a streamlined claims service to customers in the knowledge that those claims with a higher risk of ID fraud will be flagged for further investigation.

Customer data management solutions such as LexID for Insurance and identity management solutions like LexisNexis Emailage Rapid are designed to complement the insurance market’s existing counter-fraud armoury, and could provide the crucial piece in the jigsaw in understanding fraud risk before a claim is settled.

* LexisNexis Emailage Rapid is a powerful fraud risk scoring solution based on the email address and other personal information provided during the application process. In February 2020, LexisNexis Risk Solutions acquired Emailage, a fraud prevention and risk management solutions provider. LexisNexis Emailage is a proven risk assessment tool that is fuelled by continuously updating global digital insights and uses a patented, proprietary analytic approach to reimagine fraud detection.

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