LexisNexis Risk Solutions has implemented its technology to allow instant email address validation at point of quote to detect insurance application fraud.
In a statement, LexisNexis said that its Emailage Rapid product is a fraud risk scoring solution based on the email address and other personal information provided during the application process. This is amid mounting concerns over a potential rise in ID fraud as an outcome of the COVID-19 pandemic.
Application fraud, the company said, is usually done with the intent of selling policies on or setting up false insurance policies, leading to fraudulent claims.
The technology, which was previously used in the banking sector, is built on billions of transactions from global payment processors and other online industries. Emailage Rapid provides insurers with an instant risk score helping to verify an individual’s ID through email address information and digital footprint. The score will indicate whether the ID used for the insurance application could be fraudulent, LexisNexis said.
Aside from automatically validating quotes, this fraud risk score can help inform pricing and underwriting decisions when used alongside a wide range of data enrichment datasets including publicly available data, policy history data, property, environmental and prior claims data.
“Insurance providers have to strike a balance between offering a streamlined application experience to the customer with robust fraud detection and prevention capabilities,” said James Burton, LexisNexis’s senior director of insurance product management for the UK and Ireland.
“Manual checks post-quote can lead to customer friction and are limited by both time and the data resources available. LexisNexis Emailage Rapid will help prevent insurance providers writing business that is potentially fraudulent and protect individuals from having their identity compromised while helping to ensure a swift and smooth on-boarding process.”