Ghost broking is one of the big problems in car insurance right now. Put simply, it’s a fake insurance policy issued by a non-existent broker and the end result is that when an accident occurs there’s nobody for the injured party to claim from, except the MIB. Not good.
But this is good news: Fraud-busting solutions by digital insurance broker iGO4 have resulted in a 50% decrease in instances of ghost broking for the business and a 16% reduction in quotes issued to people engaging in online quote manipulation*.
The reduction follows the development and launch of new bespoke tools which identify in real time if someone is attempting to purchase multiple policies under different names or engaging in suspicious activity when generating online quotations.
Based on the number and type of changes instigated, the algorithm generates a score to determine the likelihood of fraud and uses a traffic light system to trigger a range of actions, including directing customers to a contact centre or integrating with real time pricing to influence the premium generated. In the most extreme cases – around 4% of quotes generated by iGO4’s systems – it will refuse to return a price altogether.
Matt Munro, iGO4’s Chief Executive Officer, explains how this is part of wider investment by the broker: “As insurance becomes increasingly data driven, we’re investing more in technology to transform the consumer experience of insurance and deliver better quality business to insurers. Declining fraudulent business means insurers can evaluate risk more accurately and avoid costs associated with cancellations. As a result, we can work together to pass on savings to consumers, who pay a fairer price for their policy.”
“Our data strategy means we are doing much more than identifying and preventing quote manipulation and fraud. We now using data to predict the driving behaviour scores of our telematics customers, meaning we can attract higher quality, lower risk business and drive down loss ratios. At the same time, our customers are rewarded with better up-front rates at the point of quote.”