![]() ![]() While awareness of ghost broking is low with just 24% of customers knowing about ghost brokers, 58% of Irish policyholders are worried about having their identity compromised for insurance fraud. Furthermore, 16% of 17-24 year olds have actually purchased potentially bogus insurance through a social media site. ![]() ![]() This rose to 55% amongst 17-24 year olds. In our study, 34% of Irish policyholders said they have been tempted by an advert for fake insurance on a social media site. The urgent need for a solution to this challenge is evident in recent research by LexisNexis Risk Solutions amongst insurance customers in The Republic of Ireland. The challenge for insurance providers has been spotting the flags for possible fraud at the application and quote stage without slowing down the process or causing friction for the vast majority of customers who are genuine and simply want a fast quote at a fair price. In October 2022, the Insurance Fraud Bureau confirmed it had discovered over 55,000 fraudulent motor insurance applications in the past 12 months - more than double the figure previously detected, with Ghost Brokers linked to thousands of cases. There seems to be little doubt that the actual number of ghost broking scams as well as people deliberately mis-stating or omitting information in an insurance application for a cheaper quote is on an upward trajectory. Taking a leaf from the banking sector, identity validation using email address-based intelligence is providing a solution for a growing number of insurance providers in the UK and, more recently, The Republic of Ireland.īy Shane McCabe, Strategic Account Manager, Insurance, Ireland, LexisNexis Risk Solutions Knowing that in times of economic hardship fraud increases, the pressure is on insurance providers to employ ever more sophisticated techniques to tackle fraud at the front end. This is likely to be the tip of an application fraud iceberg. Articles - Rise in fraud demands next generation of identity validation In October 2022, Aviva reported that application fraud is up 16% on the same month in 2021 and 15% of cases relate to ghost broking. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |