Tackling fraud as it happens
In the UK insurance sector alone, each year sees $1.8 billion in detected fraud and an estimated $2.9 billion in undetected fraud. Or put another way, an annual cost of $70 per household.
Moreover, all the evidence suggests that the cost of fraud to the industry is escalating year on year rather than declining, with a significant proportion of consumers believing that misrepresenting their details is an acceptable way to reduce premiums.
CDL's response has been to look to new technologies that offer a radical departure from the past and a powerful means of tackling the problem at source.
Hummingbird ingests and searches enormous volumes of data in milliseconds, making it invaluable in the fight against fraud.
Equally significantly, it provides insurance retailers with a powerful solution for enrichment, in-depth customer insight and real-time pricing strategies.
CDL has also launched a revolutionary anti-fraud syndicate, enabling a number of major insurance brands to join forces to combat the growing challenge of people ‘gaming the system' by ‘experimenting' with quote information when trying to obtain the best insurance premium online.
In its first 30 days, the Hummingbird Syndicate processed data relating to over fifteen million motor insurance quotes provided by CDL customers to over three million customers. This revealed that many consumers experiment with factors that affect the price of their policy, with some making numerous risk detail changes across multiple quotation requests.
Syndicate members can specify actions to be taken in the event that Hummingbird detects potentially suspicious behaviour, including redirecting online customers to a contact centre, flagging cases for post-sale validation, adjusting the pricing or declining to quote altogether.
As a result, they are writing better quality business, while consumers are being protected from the risks of finding they have invalidated their policies by providing inaccurate information.