How Insurance Companies Can Detect and Defeat Application Fraud

How Insurance Companies Can Detect and Defeat Application Fraud

Bureau Team
Bureau Team

November 18, 2021

Bureau Team

December 13, 2021

Table Of Contents

We’ve all, at some point in time, dealt with those friendly neighborhood uncles who’d chat us up only to peddle an insurance policy that we could do without. Insurance agents are a dime-a-dozen in India and chances are good that everyone knows (at least) one. As lucrative commissions attract more agents to the rapidly growing insurance industry, cases of fraud have also risen over the past few years. 

Insurance fraud occurs when there’s an attempt to earn profit either through non-compliance, false information or through exploiting loopholes in the insurance policy. The perpetration of these frauds is committed by agents, employees or existing and prospective policyholders. A common form of insurance fraud is when agents game the system and open insurance policies for fictitious beneficiaries.

The Insurance Regulatory and Development Authority (IRDA) mandates all insurance companies to set up fraud monitoring frameworks that include measures to prevent, detect and mitigate the risk of fraud. Despite stringent checks, the fraudsters can still exploit the system. 

Tackle fraud before it takes place

But what if such frauds are nipped in the bud? What if there’s a way to use a risk intelligence system to identify bogus applicants and assess them? It's now possible to identify such fraudsters with Bureau's risk intelligence and fraud prevention solution that uses analytics to identify applicants that might warrant a closer look.

With the help of data from user inputs, device, their behavioral history, and digital footprints, Bureau draws up comprehensive risk-gauged profiles for each user and matches them with the details provided by the applicant. High-risk profiles are then flagged for further checks while those with matched-up profiles have a smooth onboarding process. This ensures that insurance companies get the right users and less fraud while their customers get a seamless experience.

Identify application fraud with Bureau

Faster and more secure authentication

Silently authenticate users via telecom networks without any multi-factor authentication such as SMS OTPs. If there is any mismatch between the mobile number and the device, the user can be subjected to more checks. 

Establish risk attributes

Assimilates data points from email, phone, IP address, telcos to create risk-profiled identities denoted by a ‘Risk Score’.  

Tamper-proof assessment of user's devices

Device-based intelligence considers hardware and software-based signals available on the end user's device to identify risky attributes such as emulators, spoofing, and rooted phones.

Automate identity verification and KYC processes

Automates manual reviews and regulatory checks, drawing a more comprehensive picture of the user by verifying the details with official databases, Optical Character Recognition (OCR), and liveness checks.

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