Industry estimates put total losses due to fraud and rate evasion between $12 billion and $24 billion annually. Insurers need to address fraud and rate evasion earlier in the policy life cycle — not just at the time of claim.
To address that challenge, Verisk has introduced automated screening technology to detect fraud and premium leakage in new auto insurance policies. The technology lets you run RISK:check® Point of Sale — a fraud model that detects patterns of behavior closely correlated to fraud and rate evasion — on every new policy record contributed to our Coverage VerifierSM database. Most insurers already contribute their policy information to the database, so they can quickly begin using the model with minimal implementation effort and virtually no IT impact.
By screening new policies, you’ll be better able to identify fraud and rate evasion while you can still take action.
Our studies show that insurers that implement RISK:check Point of Sale will improve their new-business loss ratio by three to six points.