Shift technology insurance perspectives - Underwriting risk detection

In this edition of Shift insurance perspectives, we tackle the critical problem of underwriting risk detection. Underwriting professionals are under incredible pressure to meet customer expectations for quick application approvals while at the same time keeping their portfolio as clean and profitable as possible. To do this, they need to know that the applicant is who they say they are. They want confidence that the application itself is legitimate. They need to know that applications do not contain misrepresentations that may lead to premium leakage or other losses at the time of a claim. And they need to know that the applicant hasn’t already tried to scam them before.

None of this is easy. And unfortunately, in times of economic uncertainty, the propensity for fraud increases. Not only are normally honest people more willing to “play with the facts” to land a better premium, but truly sincere applicants may also be tempted by offers that are “too good to be true” in an effort to save a little bit of money each month. And in this financial climate, bad actors have become adept at building out their networks.

In this report, we will explore the underwriting risk trends Shift has observed and provide an analysis of what this may mean for insurers and policyholders alike.