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Proof that insurance fraud can be prevented
Despite the economic downturn being blamed for a rise in insurance fraud, it remains a largely preventable problem. Here we share Admiral Insurance's experience of preventing fraud using id verification and data sharing...
Background
Admiral was launched in 1993 with the aim of offering low cost car insurance to a wide range of people who traditionally pay high premiums such as younger drivers or those who live in cities.
Admiral is part of the Admiral Group, which includes the Diamond and elephant.co.uk brands, and Confused.com. The Group has expanded overseas and has operations in Spain, Germany and Italy. It also recently announced plans to open an operation in the US.
The challenge
As an online supplier of car insurance, Admiral like any other insurer has its fair share of fraudsters trying their luck. Admiral was the victim of one insurance scam in particular that was hitting several insurance companies. Fraudsters were setting up policies with stolen credit cards and names and addresses of innocent individuals. They would then register an accident a few days after the policy was taken out. At that current time Admiral didn’t check the identity of the third party and were paying out costs of up to £1,800 for reported whiplash. The fraudsters were able to make a tidy profit from this.
The solution
Admiral has been using 192business for several years now and as it has bought on new products, Admiral has been keen to embrace these new databases and features.
Admiral uses 192business in two main ways. The primary function is fraud detection to ensure that the individual Admiral is dealing with is the person they say they are. Secondly the recoveries section uses 192business for tracking down individuals who owe the company money.
To stop the third party insurance scam Admiral used the 192business solutions to verify the third party identities and help eliminate the scam.
“192business is the only available system that we know of that can do everything on one web page. We can negotiate around the web portal easily to check individuals on Director’s Reports, Mortality databases and driving licences as well as name and address checking”
Susan Evans, Claims Fraud Manager, Admiral
The future
Admiral is currently looking into a couple of new solutions for its future needs. One of these is data sharing which allows insurance companies to share their fraudulent data and stop fraudsters from hitting both Admiral and other insurance companies.
“We find the service at 192business to be excellent. When other systems go offline for essential maintenance works you are rarely informed. I have never had to call customer services to report any problems with 192business.”
Susan Evans, Claims Fraud Manager, Admiral
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