The insurance industry provides its policy services to distinct sectors. From health to home security, insurance policies offer financial protection to policyholders during uncertain events. However, these policies are sensitive to unauthorized access and fraudulent actions. The insurance industry needs to protect its policies from illicit claims by allowing only legitimate and authorized entities to access them. They must detect insurance fraud by utilizing advanced online ID checks because they examine the inconsistencies in the individual’s documents. According to a 2019 report, the fraud detection market in the insurance sector accumulated a share of $2.5 billion.
Digital Identity Check – A Preventive Measure to Mitigate Insurance Fraud
Online identity verification is a fraud prevention framework that authorizes customer’s identity documents through digital channels. Digital identity authentication services are crucial for protecting customers against identity theft and unauthorized access. The insurance sector provides financial aid to businesses and customers during an unfortunate event. It backs up various sectors to help them stabilize after uncertain situations. Due to its monetary policies, the insurance sector is extremely sensitive to financial losses and scams. The imposters use illicit methods to make false insurance claims and destroy the structure and management of the insurance policy providers. The illicit entities exploit legitimate customers’ identities to make false claims.
Insurance firms must utilize automated identity verification solutions to identify the customer’s details before signing up for an insurance policy. This can effectively be done through online identity checks, allowing insurance firms to provide policies to only legitimate entities. The insurance industry must conduct an extensive examination of customer’s risk profiles and financial activities during the onboarding process. This helps them determine whether the customers are authorized to access the insurance policies, mitigating the probability of dealing with illegal insurance claims.
Identity Check Online – An Effective Insurance Fraud Detector
Online identity verification solutions allow insurance firms to identify the entities that are involved in illegal insurance activities. Imposters make false insurance claims in various scenarios. They show fake documentation that involves the details of false vehicle damage claims. They make false claims regarding healthcare policies by manipulating the documents of legitimate patients. In addition to such actions, the imposters are often involved in stealing the policyholder’s documents and altering them to access insurance policies illicitly. These insurance scams can effectively be detected and mitigated using digital identity authentication solutions because they use AI-powered services to examine customer’s risk profiles.
Digital ID Check – An Automated Fraud Detection Framework
The online ID checks are powered with deep learning technologies that allow them to automate the identity verification process to provide real-time identity screening to customers. One of the most effective components of these services is biometric verification services. The biometric solutions entail the use of face identity checks to analyze customers’ facial features. The insurance sector can utilize biometric verification services to identify the risk profiles of policyholders. The policyholders are required to appear in a live video call where examiners detect their facial characteristics and compare them with the identity documents secured in the official government directories.
Biometric facial recognition uses AI technology that conducts an extensive examination of a customer’s unique facial features. In addition to biometric services, optical character recognition (OCR) services can enhance the policy operations of the insurance industry. The insurance sector can use OCR services to store the policyholders’ documents in digital formats. It detects every aspect of these documents and screens out altered and manipulated documents, mitigating the involvement of illicit entities in accessing insurance policies illicitly.
Identity Verification – A Risk Assessment Tool to Mitigate Money Laundering Attacks
The insurance sector is often targeted by money launderers for illicit funds transfers. The imposters manipulate the policyholder’s authentic accounts and steal their information to access the insurance claims and use the funds to make illicit transactions. The insurance sector must conduct AML screening to identify policyholders’ risk profiles through the customer due diligence process. It checks policyholders’ risk profiles by examining their identities against several lists, including exit control lists and politically exposed person (PEP) lists. This shows whether the customers are involved in money laundering attempts or not. This is an effective measure to eliminate money launderer’s illicit attempts to make illegal funds transfers.
Summing It Up
An online ID check is an essential framework for the insurance sector to help them secure their policies from unauthorized individuals. The digital verification solutions use deep learning solutions which help the insurance industry detect the customer’s profiles extensively. These services mitigate insurance fraud and enable only authentic and legitimate entities to access the insurance policies. The biometric services conduct facial recognition services through which they determine the authenticity of an entity. These services help the insurance industry to determine the risk profiles of customers and business owners to ensure that all the services and policies are being accessed by legitimate policyholders.
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