Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Technology Can Help Reduce Insurance Fraud

Blog
14th April 2016

In my past few blogs I have explored how the insurance industry is radically changing in the UK. In particular car insurance is leading the way with telematic technology allowing insurance companies to monitor customer behaviour in real time so that premiums can be more effectively priced.

In theory all this works for both customer and insurer. The insurance company gets a much more accurate picture of the risk they are taking on and the customer pays a realistic premium targeted at themselves, rather than just averaging out every different type of customer to create a premium that includes risky drivers.

The UK now has almost half a million cars with telematic devices and last year the growth in use was 40%. Globally we are still only talking about 1.5% of all insurance policies, but its growing fast. Insurance companies want to price their risk more effectively and, as I described in my last blog, this technology creates a win-win situation.

But there is an additional area where this technology helps industry – reducing fraud. The car insurance business has had to tolerate fraud since day one, from repairs being quoted at an inflated price to deliberate ‘cash for crash’ situations. In many cases, it is hard to refuse to pay a claim when there are no witnesses to an accident and when an accident is fraudulent there are unlikely to be witnesses.

Claims account for around 80% of insurance company costs. If fraudulent claims can be stamped out then premiums for genuine customers can be priced more realistically and handled more effectively.

Telematics devices capture an enormous amount of information about the behaviour of the driver, from acceleration to braking to cornering and speed. Most telematics devices can detect if a crash has occurred and will automatically inform the emergency services.

All this information about how the car has been used can be critical when a customer makes a claim. The insurer can crosscheck what the customer says against what really happened, because they can play back the data like a video recording of the accident. If medical claims are made against the insurance company, they can easily determine if the injuries are consistent with the recorded details of a crash.

This constant innovation in insurance is not only improving the customer experience and reducing premium prices, but making it easier to spot fraud too. Our latest white paper Insure Against Loss examines in detail the opportunities in the insurance sector. In this paper we will explore how delivering an exceptional customer experience can increase customer engagement levels and reduce customer churn.

Have you tried a telematic insurance system in your car? How has the experience been compared to your old car insurance? Please leave a comment below.


Helen Murray
Article by: Helen Murray

News & Insights

Webhelp Payment Services
Solution Designer
Service Provider
Technology Enabler
News
Webhelp response to the Covid-19 Coronavirus

Webhelp Business Continuity in a responsible manner How we respond to the Covid-19 crisis to ensure the continuity of our business for the benefit of our people, our clients and their customers. We face an unprecedented time of stress and uncertainty. From individuals, to families, to companies, we have all been impacted by the effects of the virus. We recognize that the global landscape of...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Blog
How COVID-19 will create a revolution in flexible working

Preface 01/04/20 Since the time of writing this, just a few weeks ago, the world has changed dramatically, with entire countries entering strict lockdown periods and large regions operating under shelter in place instructions. My thoughts below on the importance of flexibility and looking after...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
A message from the Founders

  ​​​Hello, We are facing an unprecedented situation today, which requires that we take an exemplary citizen's approach to protect the most vulnerable people and to do everything we can to limit the spread of this pandemic. Thank you for your mobilization in recent...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
#4 OneShot – Culture

Table of Content: A Word : Location A Figure: 32% stock market valuation for companies with a strong customer culture Three Opinions: Culture, what impact does it have on your performance? A piece of information: At Renault, design has become THE cultural priority. A Demo : Cultural...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
[Fashion] Fifty Jeans – Launch your brand without cashflow problems!

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Load more
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook