The identity and fraud specialist claims fraud prevention is vital if insurers want to lower their premiums. To do this he said it was necessary to tackle for both serious fraud and those ‘white lies’ which pose a challenge for organisations.
Research by Equifax has found that almost a fifth of people aged 25-34 feel it is ‘slightly acceptable’ to overestimate the value of goods or the cost of repairs when making an insurance claim. The same percentage, from the same age group, also think it is ‘slightly acceptable’ to omit some existing financial agreements when making an application.
Marsden warned, although this was a problem, if too many preventative measures were put in front of customers companies may be perceived as difficult to deal with. He added that technology and data sharing was providing a solution to this.
He said: “While it may be impossible to completely eliminate fraud, it is clear that technology and data sharing initiatives are tightening the net. Data is now used in increasingly sophisticated ways to correlate, identify and report fraud; and the technology enabling this is more affordable and readily available than ever before.”