Ever since the phrase “digital transformation” was coined more than a decade ago, the insurance industry has been hurdled into the online universe, facing that they must meet the demands of digitally native, always-on consumers. While life insurers realize this goes beyond just having an application form on a website, many are not realizing just how at risk their customers’ data really is. LexisNexis Risk Solutions recently worked with a leading life insurance provider to leverage digital capabilities and create a superior customer experience while also protecting against identity-related fraud.

Guarding against fraud is a necessity

Identity fraud continues to be an industry-wide problem for insurance carriers, costing billions of dollars each year. As data breaches become more prevalent and gain more attention, insurers know that it is important for them to safeguard their data. As more consumers move online for their insurance needs, carriers are scrambling to find identity fraud solutions that are effective for all stages of the insurance lifecycle, including new account setup, logins, account changes and filing claims, to name just a few. Fraudsters are becoming more and more sophisticated and, unfortunately, many insurers still struggle with adapting to evolving technologies – and consumer expectations.

Most insurers have a huge repository of existing data in terms of historic claims and policy information plus a steady stream of new claims and application data. This presents a prime opportunity for bad actors to pose as imposters and garner valuable personal information that can put both customers and the company at risk. At LexisNexis Risk Solutions, we set out to empower insurance carriers to more efficiently identify and investigate potentially fraudulent claims and questionable provider behavior.

Managing digital identity risk

An affective Identity Access Management (IAM) program is key to managing digital identity risk, combatting cyber fraud, improving fraud capture rate and balancing both customer expectations and experiences. By implementing a layered approach, carriers can authenticate with a level of friction that matches the risk posed. Through our ThreatMetrix® for Insurance solution, we leverage digital identity insights built from billions of transactions and cross-industry data to pinpoint potential fraud earlier. Our model connects the dots between offline behavior and myriad pieces of information individuals reveal in online transactions, tying them to a unique digital identifier.

As part of our LexisNexis® ID Compass Platform, ThreatMetrix can help you:

  • Protect against identity theft while creating a frictionless customer experience
  • Confidently detect key situations that put user accounts at risk
  • Identify and authenticate channel agnostic devices and prevent fraud in near real-time
  • Discover bot attacks, malware and account takeover attempts by building more accurate, yet simpler, risk models. 
ThreatMetrix at work

A top 10 life insurance company that offers both insurance and investment products was looking to reduce friction when onboarding customers into its retirement products, while at the same time ensuring better fraud protection. By leveraging ThreatMetrix to authenticate customers with a level of friction that matched the risk posed, the insurer saw a 20% increase in fraud capture rates with minimal false positive rates. Download the case study to learn more about how this company protected its monetary assets while delivering an enhanced experience for its most important assets – its customers.

Visit our website to learn more about how ThreatMetrix can help you protect your customers and your business.