Tag: lexisnexis

Consumers in Ireland Can Benefit from Faster, More Precise Home Insurance Quotes

 In a development to help residents in the Republic of Ireland access fair and accurate home insurance cover following a record year of heat and rain, Ivernia Insurance, one of Ireland’s leading underwriting agencies, is set to use highly granular detail on property risks, in a new agreement with LexisNexis® Risk Solutions, the data, advanced analytics and technology provider.

The new agreement will enable Ivernia Insurance to gain a much deeper understanding of the property characteristics of a customer’s home, as well as the perils risks for the customer’s precise address such as flood, fire, and subsidence, at the point of quote. This will help Ivernia and its insurance partners, to deliver right, first-time insurance quotes, and products suited to each customer’s specific needs.

Ivernia Insurance will access the detailed property data, including precise perils risks from LexisNexis Risk Solutions, via Applied Riskhandler, a highly scalable SaaS platform * that enables rapid insurance product innovation and underwriting controls to speed the quote process for customers.

Shane McCabe, Insurance Strategic Account Manager, LexisNexis Risk Solutions, Ireland, said: “It is vital that home insurance providers access highly accurate and predictive data on property risks, up front, to help them price fairly and precisely as we continue to experience extremes in weather. We are delighted to have secured this contract with Ivernia Insurance, working in partnership with Applied Riskhandler, to help support fair and accurate pricing for home insurance cover.

Graeme Murdock, Head of Underwriting of Ivernia Insurance said: “Ivernia’s goal is to make insurance more affordable and to assist customers during unexpected events. In the past year, Ireland saw the warmest June on record and the wettest July on record, and then we had storms in August that brought trees down and caused flash flooding. The more we can use data to understand the customer’s needs and the risks of their property, the better we can serve them by offering a competitive premium with cover that matches their risk and help them protect their assets. That is why we have taken the decision to invest in the data solutions offered by LexisNexis Risk Solutions.”

Stephen Murphy, Senior Director of Customer Experience, Applied Systems added: “This partnership marries best-in-class data insights, technical capabilities to make these data analytics work effectively in the quote process, and insurance market expertise to deliver the right pricing and products to customers. It is this winning combination that will ensure that consumers have access to home insurance protection, that  has been priced for the precise risk of their property.”

Irish Insurance market to embrace email intelligence to fight fraud

Shane McCabe, strategic account manager, Insurance, Ireland, LexisNexis Risk Solutions 

An Garda Síochána (Ireland’s National Police and Security Service) lists the ‘Advance Fee Fraud of Ghost Broking and Car Insurance Fraud’ as one of the six most common types of fraud happening in Ireland today.  A new survey by LexisNexis® Risk Solutions of Irish insurance customers certainly seems to back this up.  Our findings show that over a third (34%) have been tempted by an advert for cheap insurance on social media – a common sales channel used by ghost brokers – and 16% of 17-24 year olds have actually bought insurance through a social media advert.  Equally concerning is the fact that just 24% of the people surveyed know about ghost brokers.

Ghost brokers promote unrealistically cheap car insurance on social media and sell on bogus policies using stolen ID to unwitting younger or high-risk drivers who are in search of a cheap policy.  Little wonder over half (58%) of the insurance customers we surveyed are worried their identity could be compromised for insurance fraud and the vast majority (89%) now expect insurance providers to undertake identity checks.

There is no denying that fraud costs the Irish insurance industry dear.  Aside from ghost broking, insurance providers face the growing problem of people deliberately misstating information in an application for a cheaper quote – 25% of Irish insurance customers in our study thought that this is somewhat or completely acceptable, rising to 43% of the 17-34 year old population.  

Despite investment in educational campaigns warning of its danger, an estimated €200 million is lost to insurance fraud each year which inevitably impacts upon insurance premium prices for innocent policyholders.  In fact, approximately €50 on every motor insurance policy goes towards covering the cost of fraudulent claims on an annual basis. 

Countering fraud starts with confirming that an applicant is who they say they are and not linked to fraud, often using public records data and data shared amongst insurance providers. This continues to provide a strong basis for identity validation, but can prove time-consuming and may cause friction when the vast majority of genuine customers deserve a quick and painless application and purchase experience. 

The next evolution in identity validation uses email address intelligence.  This has worked to great success in the U.K insurance market where it is providing flags for fraud early in the application process and helping to cut cancellation costs. Now insurance providers in the Republic of Ireland are set benefit.

An email addresses is a unique global identifier and one of the most commonly used components for any online transaction.  An email address is also linked to multiple online accounts and transactions. This means each individual email address creates a digital footprint which can make it one of the most powerful tools for detecting application fraud. 

Solutions such as LexisNexis® Emailage® Rapid provide an instant risk score at the point of quote to indicate a genuine identity, whether the identity has previously been linked to fraud or whether it could be a fraudulent ID created to either procure insurance with the sole intent of making a fraudulent claim, or to sell insurance on as a ghost broker. It can also indicate whether the email address and domain even exist, when the email address was first seen, or whether the email address bears a close resemblance to the proposer’s name for the policy.

This solution leverages billions of online transactions and email address data points, including 82,200 fraud events shared on average daily.

Internet penetration stands at over 90% in Ireland and as nearly one third (32%) of younger people  aged between 16 and 29 years either bought or renewed existing insurance policies online last year,  it is easy to see how vulnerable they might be to fraud but also how susceptible the insurance market is to online fraud.  

As the volatility of the macroeconomic environment continues unabated, it is more important than ever for insurance providers to conduct robust fraud prevention strategies.  Innovations such as email identity validation can help to boost the Irish insurance market’s resilience to identity fraud, protect unwitting motorists from the threat of ghost brokers and ensure a streamlined quote experience for the genuine customers.

In February 2020, LexisNexis Risk Solutions acquired Emailage, a fraud prevention and risk management solutions provider. LexisNexis® Emailage® is a proven risk assessment tool that is fuelled by continuously updating global digital insights and uses a patented, proprietary analytic approach to reimagine fraud detection.

54% of Young People in Ireland Have Been Tempted to Buy Fake Insurance Online

A new survey[i] of insurance customers in the Republic of Ireland has highlighted the risks facing young people in the region who are being targeted by ghost brokers selling fake insurance policies. The study by LexisNexis® Risk Solutions, a leading data, advanced analytics and technology provider for insurance, found that:

  • 54% of 17–34-year-olds have been targeted and tempted by an advert for fake insurance on social media
  • More than 1 in 10 (16%) of the youngest people surveyed, aged 17-24, has bought insurance through one of these adverts
  • 71% of 17–34-year-olds are worried their identity could be compromised for insurance fraud such as ghost broking
  • 92% of 17–34-year-olds expect insurance providers to check they are who they say they are when applying for insurance
  • Only 24% of the people surveyed actually know what a ghost broker is

In response to the growing problem of insurance application fraud and ghost broking[ii], LexisNexis Risk Solutions has launched LexisNexis® Emailage® Rapid  for the Irish insurance market.

Emailage Rapid is a powerful fraud risk scoring solution based on the email address and other personal information provided during the personal lines insurance application process.  As insurance fraud continues to cost insurance companies in Ireland an estimated 200 million annually[iii], Emailage Rapid provides immediate verification of the applicant’s digital identity and checks they are not linked to any fraudulent activity prior to policy inception. As well as helping to combat fraud, the solution may also help reduce the cost of cancellations to the insurance sector.

Emailage Rapid is built from over 82 thousand fraud events and transactions shared daily[iv], to provide a real-time risk score[v] at the point of quote. The score indicates a genuine identity, whether the identity has previously been linked to fraud or whether it could be a fraudulent ID, which may have been created to either procure insurance with the intent of making a fraudulent claim or to sell insurance on as a ghost broker[vi]. It provides additional metadata points, such as whether the email address and domain even exist, when the email address was first seen, or whether the email address bears a close resemblance to the proposer’s name for the policy.

An Garda Síochána (Ireland’s National Police and Security Service) lists the ‘Advance Fee Fraud of Ghost Broking and Car Insurance Fraud’ as one of the six most common types of fraud happening in Ireland today[vii]. Yet, research by LexisNexis Risk Solutions highlights that only 24% of people know about ghost brokers. As the number of internet users in Ireland continues to grow with a current 4.43 million internet users, projected to reach 4.73 million individuals by 2027[viii], so does the opportunity for online crime.

Shane McCabe, insurance strategic account manager, LexisNexis Risk Solutions, Ireland, said: “Ghost brokers typically advertise their services online, claiming to be able to secure prospective policyholders a cheap insurance policy. They often target the young, who are more likely to use social networking and instant messaging[ix]. As nearly one third (32%) of younger persons between 16 and 29 years of age either bought or renewed existing insurance policies online last year, we can see how vulnerable they might be to fraud[x]. It is critical that insurance providers can offer the seamless online experience that policyholders expect, while protecting themselves and their customers from fraudsters. Building on the success of Emailage Rapid in the UK, we are delighted to have launched LexisNexis Emailage Rapid as our first motor insurance product for insurance providers in the Republic of Ireland.”

 

[i] 1000 insurance purchasers surveyed in the ROI, November 2022 through Maru/Hub.

[ii] https://www.socp.org.uk/news-insight/news/articles/ghost-broking-is-on-the-rise/97510

https://www.abi.org.uk/news/news-articles/2020/09/detected-insurance-fraud/

[iii] https://www.insuranceireland.eu/consumer-information/insurance-fraud

[iv] https://risk.lexisnexis.com/global/en/products/lexisnexis-emailage-rapid

[v] LexisNexis® Emailage® Rapid is a powerful fraud risk scoring solution based on the email address and other personal information provided during the application process. In February 2020, LexisNexis Risk Solutions acquired Emailage, a fraud prevention and risk management solutions provider. LexisNexis® Emailage® is a proven risk assessment tool that is fuelled by continuously updating global digital insights and uses a patented, proprietary analytic approach to reimagine fraud detection.

[vi] A “Ghost Broker” is a term used to describe a fraudster who pretends to be a genuine Insurance Broker in order to sell fraudulent car insurance.

[vii] Contains Irish Public Sector Data licensed under a Creative Commons Attribution 4.0 International (CC BY 4.0) licence https://www.garda.ie/en/crime/fraud/what-are-the-6-most-common-types-of-fraud-in-ireland-today-and-how-to-avoid-becoming-a-victim-.html

[viii] https://www.statista.com/statistics/566963/predicted-number-of-internet-users-in-the-ireland/

[ix] https://www.cso.ie/en/releasesandpublications/ep/p-isshdcb/householddigitalconsumerbehaviour2021/internetactivities/

[x] https://www.cso.ie/en/releasesandpublications/ep/p-isshdcb/householddigitalconsumerbehaviour2021/internetactivities/

LexisNexis Risk Solutions Insurance Opens for Business in the Republic of Ireland

A year from the launch of the Insurance Fraud Coordination Office (IFCO) in Ireland[i], LexisNexis® Risk Solutions Insurance has expanded into the Republic of Ireland to deliver data enrichment services to insurance providers in the region and boost the market’s fraud detection capabilities. A leading data, analytics and technology provider to 97% of the U.K. insurance market, LexisNexis Risk Solutions, driven by requests for greater choice and scale from the Irish market, will deliver solutions to support more accurate underwriting and pricing, streamline claims’ processes, help reduce fraud and improve the customer’s experience when they are buying or renewing a policy.

Research shows that 84% of people in Ireland believe insurance fraud is unethical[ii] and a separate study of insurance providers themselves found the vast majority want to improve their fraud detection and prevention techniques[iii].

The expanded business will share space with the highly expert and continuously growing team of data scientists LexisNexis Risk Solutions Insurance already has based in Dublin, who support Irish insurance providers with geospatial intelligence solutions and advanced analytics, as well as provide consulting on all things data science globally.

Insurance providers in the Republic of Ireland will now be able to take advantage of some of the latest data innovations from LexisNexis Risk Solutions to help ensure consumers are priced accurately and fairly and protect them from fraud risks such as ghost broking as the cost of living rises and fraud climbs[iv]. Indeed, there has been an 88% increase in fraud-related crimes in the past year according to Central Statistics Office data.[v]

Shane McCabe who brings more than 18 years’ experience in the Irish insurance market, has joined to lead the company’s client engagement efforts.

Jeffrey Skelton, managing director, Insurance, Europe, LexisNexis Risk Solutions, said: “Having an operation firmly in the Republic of Ireland means we can now be much more hands-on supporting both our new and existing insurance customers, which is essential to building trust and engendering long term relationships.

“Insurance providers in Ireland face similar challenges as those in the U.K., so it’s only right that we can offer our proven solutions to deliver more streamlined and faster decisions at point of quote and claims, reduce insurance application fraud, improve pricing accuracy and help minimise risk exposure across their personal lines businesses. This is the start of an exciting new era in our business growth to help Irish insurance providers solve for their challenges, while meeting their business objectives.”

The LexisNexis Risk Solutions Insurance business is part of Risk, a market segment of RELX, a global provider of information-based analytics and decision tools for professional and business customers. RELX is a listed FTSE 100 company.

[i] https://www.independent.ie/irish-news/fake-insurance-claims-can-be-reported-to-new-garda-unit-40800479.html

[ii] https://www.insuranceireland.eu/news-and-publications/news-press-release/insurance-fraud-surveys-show-84-in-ireland-believe-insurance-fraud-is-unethical

[iii]https://esource.dbs.ie/bitstream/handle/10788/4316/Dissertation%20Susan%20OBrien%2010536966.pdf?sequence=1&isAllowed=y

[iv] https://www.bbc.co.uk/news/uk-62247499

[v] https://www.cso.ie/en/releasesandpublications/ep/p-rc/recordedcrimeq12022/image