Carriers Saw More Identify Fraud As Digital Activity Spiked

Since the onset of the pandemic, insurance carriers have seen an uptick in consumers’ digital activities across both underwriting and claims.

Nearly 70% of carriers said this increase in digital activity was accompanied by growth in identity fraud, according to a survey by LexisNexis Risk Solutions and Aite-Novarica Group.

The most common points of entry for identity fraud among property & casualty insurance carriers are underwriting or the point of application, customer service or at the point of account and claims at the point of payment, according to the survey.

The study underscored the importance of evaluating fraud strategies and capabilities across underwriting, customer service and claims as the insurance industry continues its digital transformation, according to LexisNexis.

‘Our experience tells us the largest drivers of identity fraud for insurance are a combination of purely digital transactions and the increased availability of consumer data whether on the dark web, social media or online consumer portals across all industries,’ Kim Brown, director, insurance identity access management solutions for LexisNexis Risk Solutions, said in a release.