Dean Richardson, Head of Insurer Sales, SSP:
As you may have recently seen in Insurance Times, SSP has won the inaugural Tech & Innovation Award for the E-trading Initiative of the Year. SSP were awarded this for SSP Verify, which the judges described as a “unique and game-changing solution to the huge market-wide problem of pre-inception fraud”.
Fraud at the point of quotation (application) is a huge issue in the insurance industry. With more than a third of converted policies having at least one potential indicator of fraud, the cost to the industry is nearly £2.8bn in lost premiums and the additional claims exposure.
Insurers have traditionally found the easiest way to respond to this is by loading their prices, adding an extra £50 to the annual insurance bill for every UK policyholder. Yet this is not a sustainable approach, especially when you face indifferent and sceptical consumers who want the best possible price and have little trust in the insurance industry.
That's why we've ripped up the rule book. SSP’s game-changing approach enables you to focus on your quality clients and to write the risks you want to write at the right price rather than compensating for fraudsters.
With a unique multi-channel single customer quote view, tracking customers across direct, broker and aggregator channels in real-time, you can identify fraudulent applications and then decide whether to push ahead with a quote and at what price. As your fraud defences cover the whole market, there is no unguarded channel for dishonest customers to exploit.
By having such acumen at your fingertips, you will gain a significant, and potentially insurmountable, advantage over competitors that lack the necessary intelligence at the point of quote. Those insurers without this first line of fraud defence may quote more competitively for, and thus win, suspicious risks, unaware that it's business they really don't want to write.
A number of progressive insurers have already adopted innovative solutions to tackle application fraud, and have identified significant levels of premium leakage as a result across the Motor and Household lines of business.