Loading, Please Wait...
CHICAGO and PORTLAND, Ore., Sept. 24, 2019 (GLOBE NEWSWIRE) -- As more U.S. consumers use digital platforms when engaging with insurance companies, new fraud challenges are likely to arise for insurance carriers. TransUnion (NYSE:TRU) and iovation, a TransUnion company, shared this news as well as recent industry fraud data today at InsureTech Connect 2019. Among the 10 billion global online transactions iovation screened from Sept. 2018 to Sept. 2019, it identified 9.14% as risky in the insurance industry compared to 5.09% across all industries.1
“The advantages of an online insurance offering is undeniable. It makes business processes more efficient and the consumer experience more convenient,” said Melissa Gaddis, iovation’s senior director of customer success. “However as transactions move online so will the fraudsters. With U.S. consumers becoming increasingly comfortable transacting with insurance companies online, we expect new types of digital fraud to emerge here like they have in other parts of the world.”
According to research from global market intelligence agency Mintel, in 2017 only 9% of U.S. consumers said that they used their health insurance provider’s mobile app. A year later, that number nearly tripled to 25% 2. Mintel also found that in 2019, 25% of millennials were interested in an online insurance application process while 29% of Gen Z consumers said they were interested in using mobile tools for their insurance3.
As mobile becomes more prevalent, TransUnion and iovation believe that insurers face several fraud challenges, including:
“Fraud is now top of mind for many insurance carriers, especially as digital engagement becomes more widespread in the industry,” said Mark McElroy, executive vice president and head of TransUnion’s insurance business unit. “As more prospective policyholders move towards using digital platforms, it’s incumbent on carriers to leverage all available tools to ensure they avoid fraud and keep costs down for both themselves and consumers.”
The TransUnion and iovation insurance solution offerings combine iovation’s digital identity solutions that use device intelligence and TransUnion’s identity verification solutions. More information about these insurance solutions can be found at the following links: iovation insurance and TransUnion insurance. For an infographic about new fraud challenges likely to arise for insurance carriers, go here. To discuss in-person, visit iovation booth 603 at the InsureTech Connect Conference in Las Vegas, Nev. through Sept. 25.
About TransUnion (NYSE: TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Europe, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.
We call this Information for Good.®
iovation, a TransUnion company, was founded with a simple guiding mission: to make the Internet a safer place for people to conduct business. Since 2004, the company has been delivering against that goal, helping brands protect and engage their customers, and keeping them secure in the complex digital world. Armed with the world’s largest and most precise database of reputation insights and cryptographically secure multifactor authentication methods, iovation safeguards tens of millions of digital transactions each day.
1 iovation defines risky transactions as those that its customers either deny or review further due to fraudulent indicators