Insurance is a means of protection from financial loss.

It’s one kind of risk management to protect the insured. Nowadays, with the enforcement of people’s risk awareness, insurance industry becomes much more popular than ever before. In the insurance industry, a lot of insurance products are born. And many people choose to buy insurance to protect their financial loss, who are known as insureds. However, with the development of insurance industry, insurance frauds also become a problem in this industry. Insurance fraud is any act or activity committed to defraud an insurance process. The most chief motive of insurance crime is for financial profits.

Before we talk about the solution to insurance frauds, we need to clarify the insurance process.

Normally, if one person wants to buy insurance, he/she will choose suitable insurance products. After he/she chooses the insurance, the insured will receive a contract, also called the insurance policy. The insurance policy clarifies all the conditions and circumstances under which the insurer will compensate the insured. If the insured suffers a financial loss, which can potentially compensate for the insurance company, the insured is allowed to submit a claim to the insurer (the insurance company) for compensation. After signing the insurance policy, insurance is valid. 

How will insurance frauds happen in this process?

Commonly, there are three types of insurance frauds, which are medical insurance frauds and car insurance frauds.

Firstly, medical insurance frauds are very common in the insurance industry. The insured bought medical insurance and found that other people use his/her medical insurance. For instance, in 2017, the insured Mr. Hu found his medical insurance card was lost and used by someone. In Mr. Hu’s opinion, if the medicine shop can recognize the user’s identity to check if the person is real insured, it will be safer.

Secondly, it is about another common fraud, car insurance fraud. In the sharing economic era, people prefer to rent a car and buy the insurance during traveling. In some cases, the insured borrowed the car to the other person. And the person was drunk and an accident happened. According to the regulations of commercial car insurance, if the accident happens because the insured is drunk, the insurance company will not compensate. The insured cheated that he was the real driver and applied for compensation. That is rental car insurance fraud.

How to prevent such fraud in the insurance industry?

KYC (Know Your Customer) solution will be useful in these cases in the insurance industry. 

For medical insurance fraud, KYC solution can help the insurance company recognize if the insured is real or check if the insured tells the truth. It can effectively reduce frauds.

For rental car insurance fraud, we can prevent this fraud at the beginning of signing an insurance policy. The insurance company can verify the insured’s identity and record in their profile by using facial recognition. When the accident happened, the insured should be applying for quick claim compensation online. And the insurance company can verify the insured and check if the insured is in the site of accident through our platform.

IDenify provides KYC solution to the insurance industry to protect both the insurer and the insured.

How does it work?

No complicated operating process! The insurance company is expected to integrate our developer to the company’s server. The insurer can ask the insured to show their face and record as their profile. While signing the insurance policy and applying for claims, the insurance company can recognize whether the insured is real. It can effectively guarantee “the real insured and the real insurance policy”. 

What’s more, facial recognition technology can not only improve the security of the insurance business but also improve working efficiency. When the insured applies for claims, the insurance company can directly and easily use face recognition to verify the insured, instead of verifying identities manually. The manual identifying process is too time-consuming and complicated, no matter for the insurer or the insured. For example, Fude Life and Tiancheng Shengye will integrate face recognition technology into their Internet terminal products, providing their users with a better and more convenient insurance service. According to reports, based on the calculation of 5,000 customers per year, the average time for each customer to come to the insurance company is about 30 minutes, which saves 2,500 hours in total.