While digital insurance services have reduced friction across the claims filing process, they’re also opening new doors to fraud. Digital fraud is increasing in the insurance industry at 21% by 2026, with fraud costs expected to reach $12B1. Kount’s industry-leading fraud prevention and identity trust platform helps over 9,000 companies globally, including leading insurance providers, to protect against fraud and deliver rapid growth with a frictionless customer experience.
1Blue Weave Consulting. Global Insurance Market. July 8, 2020.
Fraudulent policies can be opened by assuming a legitimate identity through account takeover, hacking, or scraping personal details, in order to submit false claims and receive payment.
Kount’s Digital Identity Trust Platform and AI-driven data network determines the identity trust levels of each person that submits a claim or applies for insurance, without relying on easily-stolen credentials and personal information. Kount identifies and flags claims made where identity information doesn’t match the policy holder or applicant.
• Prevent account takeover
• Stop illegitimate policies, fraudulent claims, and stolen payments
• Verify the identity of a claimant
• Identify and flag claims submitted by unauthorized identities
Bots submit illegitimate bulk quotes to open fake policies by using consumer information purchased or stolen from lead generators or brokers’ books. Carrier data requirements make them costly to process.
Kount’s AI-driven solution detects this automated behavior to reduce bot quotes preventing the quotes from being submitted. Bot quote prevention lowers the cost of carrier processing on illegitimate quotes.
• Stop bot activity
• Reduce fake quotes
• Lower carrier processing costs
Ghost brokers advertise deceptively low premiums in order to submit a policy request on behalf of a legitimate applicant. However, they make money by use misleading details and provide a fraudulent payment to the carrier, ultimately cancelling the policy after pocketing the applicant’s payment, leaving them uninsured and out the payment.
Kount Control’s device and account intelligence analyzes trust and risk signals to evaluate user behavior and device and network anomalies to detect and prevent illegitimate broker policy applications from being submitted on behalf of unsuspecting customers. Kount’s Digital Identity Trust Platform identifies and verifies devices to ensure the identity of the person who Is making a claim and help detect ghost brokering.
• Analyze trust and risk signals
• Detect and prevent illegitimate broker policy applications
• Verify devices to ensure the identity of the person
Service providers can claim or forge coverage through tactics including account takeover to perform a service without legitimate insurance coverage.
Kount Control protects against account takeover through rich data from Kount’s Identity Trust Global Network ™ which includes user type, device specifics, IP risk, geolocation, custom data, and more. Carriers can create a welcoming experience for known customers and protect against fraudulent account access.
• Protect against account takeover
• Verify identity trust
• Adapt friction based on trust levels
Lead Qualification and Identification
Web lead generation tools capture visitor information to drive communication and turn web visits into customers.
Kount’s leading digital identity verification helps identify visitors, manage leads, and determine who is shopping for a quote. Quickly segment high-value or high-risk leads to optimize marketing and sales efforts, personalize customer experiences, and reduce time spent vetting prospects.
• Identify website visitors and anonymous leads
• Segment shoppers from visitors
• Distinguish bots from customers
• Deliver personalized experiences
• Accelerate lead generation with identity data
Marketing Campaign Efficiency and Conversion
Bot clicks and fake policy submissions reduce marketing campaign effectiveness and efficiency by lowering campaign conversion. The growing percentage of bot clicks and quote submissions can corrupt marketing data, and drive wasted marketing efforts on unproductive campaigns.
Kount Control’s device and account intelligence analyzes trust and risk signals, evaluating user behavior and device and network anomalies to detect and prevent bot activity, and to allow marketing to focus on legitimate leads.
• Access Email Risk Assessment and Identity Trust to identify legitimate users
• Reduce risk with Trusted Device data
• Identify risk associated with IP addresses
• Reduce fake quotes
• Improve lead qualification with advanced data
After eliminating bots from legitimate website visitors, marketing can amplify campaign efficiency by incorporating buying propensity data to generate higher quality leads.
Kount’s Digital Identity Trust Platform, linked by AI to Kount’s data network, accesses critical buying intent data to determine when a prospect is ready to purchase. Kount compares the provided name and email to data collected on our platform.
• Determine willingness to purchase
• Flag devices outside of service areas
• Measure lead quality based on legitimate name, email, and more
Kount’s Platform identifies customer risk to stop claims padding, where policyholders pad claims by exaggerating the damage or replacement cost of a legitimate claim to get more money. This “soft fraud” can be intentional or uninformed, but it is estimated to increase carrier costs by 5 to 25 percent for every claim dollar2. Since the investigation costs are often higher than the potential savings, many carriers let it slide.
Claims Staging and
Crash for Cash
Kount AI-networked data detects claims connected to high-risk consumers or fraud rings to stop claims staging and crash for cash. With claims staging, a loss is deliberately created for a total-loss claim. In crash for cash, fraud rings intentionally get into accidents and seek compensation. These are time consuming and costly for SIU’s to investigate, costing insurers billions each year.
Kount’s digital identity verification and risk assessment helps ensure that claims submitted online are legitimate. Padded or staged claims have increased with the ability to upload photos of damaged property, but Kount can help identify when a policyholder claims a friend’s damaged property as their own.
Kount’s Identity Trust Global Platform verifies a claimant’s identity from multiple data points, and determines their risk level to flag claims for possibly non-existent soft tissue injuries. Kount notifies the carrier if a claim requires additional attention.
2Insure.com. Padding Insurance Claims Hits Everyone’s Wallets. 1/23/15.
Technology can proactively identify a fraudulent claim to reduce the major impact of claims fraud on an insurance carrier’s bottom line.
Traditionally, carriers depended on enhanced cost data to show the true value of claimed loss. Emerging technology, however, focuses on identity trust and data verification to determine if the appropriate person is making a claim, identify coordinated efforts, or flag claims for added scrutiny.
Policy Underwriting Fraud
Kount accurately verifies identities and devices, allowing carriers to detect when a bad actor attempts to become a policyholder or takes over an account to open an illegitimate policy. Carriers can use link analysis to determine if an applicant is connected to previous fraud behavior, and flag applicants to approve a policy quickly, review the application, or decline to underwrite a risk. Kount’s robust data network identifies misleading information and informs more accurate underwriting decisions.
With customer preference moving towards managing policies and claims online, insurers are expanding digital and mobile functionality to improve the customer experience3.
Four in ten insurers are planning on expanding their support for their customers to open new policies, file claims, and submit documentation through their mobile apps over the next year.
To ensure fraud doesn’t slow digital innovation, an advanced fraud solution must be put into place at the same time.
36% of insurers say false claims filed by customers are their most significant fraud threat, while 10% cite fraudulent policy creation and 10% cite account takeover.
3Expanding Digital Innovation: Emerging Fraud and Attack Vectors. Javelin Industry Report. January 2020.
Kount Control –
Account Takeover Protection
Kount Control – Account Takeover Protection stops malicious logins, detects and protects against bots, and enables personalized customer experiences. It delivers adaptive protection against account takeover attacks, provides reporting and data presentation to uncover trends, and enables customized user experiences.
Kount Control allows carriers to reduce fraud in the cases of bot quotes, identity assumption, ghost broking, and service fraud. At the same time, marketing can use trend data collected through Kount Control and analyzed in Datamart or Data on Demand to amplify campaign efficiency and conversion.
Kount Command, an AI-driven fraud protection solution, reduces digital payments fraud and delivers personalized customer experiences. It delivers the most accurate insurance fraud protection to dramatically improve bottom-line profitability and includes everything needed to evaluate trust levels, including an extensive network of trust and fraud related signals, advanced AI and machine learning, and the ability to create, edit, and test business policies, and a case management tool for manual reviews.
Together with the Identity Trust Global Platform, Kount Command allows carriers to reduce payments fraud in the cases of ghost broking, claims padding, claims staging/crash for cash, damage assumption, and doctor shopping. The collected payments and identity data adds to the insights available for use by marketing in all use cases, including lead qualification and identification, campaign efficiency and conversion, and buying propensity.
Identity Trust Global Platform
Kount’s Identity Trust Global Platform is the largest data network of trust and fraud-related signals, networked by AI to uncover the true level of trust behind interactions. With the ability to link signals from payments data, location ID data, digital identifier data, and unique customer data, carriers can immediately detect and reduce fraud across their services.
Networked digital verification data enables carriers to stop ghost broking, service fraud, claims padding, claims staging, crash for cash, damage assumption, doctor shopping, and more. Carriers can also use Kount data to gauge buying propensity, amplifying their campaign efficiency to generate higher quality leads.
Email Risk Assessment and
Email First Seen gives customers the age of an email that appears in an interaction, enabling them to determine identity trust more quickly and accurately. Trust levels are usually low when an email is new or hasn’t been seen in previous interactions, since fraudulent activity and automated attacks often use new credentials. Native to the Kount platform, Email Risk Assessment and Identity Trust information is accessed in real-time to inform fraud and trust decisions through identity verification.
Email Risk Assessment and Identity Trust allows carriers to reduce risk, improve fraud detection, and protect against identity assumption, ghost broking, and service fraud. And with accurate email age data, marketing can target campaigns towards legitimate shoppers who are more likely to convert.
Datamart and Data on Demand
Datamart is the analytics and reporting functionality within the platform that enables reporting on the rich data points collected from payment transactions, customer interactions, and outcomes.
For deeper analytics, Data on Demand provides collected data from Kount’s platform that is enriched with data from Kount’s Identity Trust Global Network, hosted by Kount in a private data warehouse for carriers to perform deep analysis, reporting, and custom ML models. Analytics from the aggregated data can uncover insights and the value or risk associated with each customer, business, or partner. It can also reveal business operation improvement opportunities, and can surface customer and market insights.
Carriers can use Datamart and Data on Demand to investigate suspicious behavior and to analyze business performance, and apply those discoveries to inform future rules and policies and to uncover insights into customer behavior. That knowledge can improve lead qualification and identification, drive new use cases, or help expand sales channels.
Increase profitability with Kount’s digital identity verification by identifying and marketing to low-risk customers or prospects that are in the market for your services.
Minimize the financial impact of fraudulent claims by identifying potential insurance fraud indicators at any point in the customer lifecycle.
Streamline the underwriting process with digital identity verification data to speed up and the process and make it more accurate.
Reduce insurance policy and acquisition costs with digital identity verification.