32 | SEPTEMBER 2017 | Claims Magazine | PropertyCasualty360.com
Insurance carriers are constantly look- ing for better ways to fight fraud. As technologies become more advanced, new options are appearing on the
market. Telematics and usage-based insurance are generating a lot of interest,
with the telematics market forecast to
show a 50% compound annual growth
rate by 2020.
But could fraudsters (people know-
ingly committing a crime) be exposing a
flaw in how carriers collect data to deter-
mine fraud? What is the likelihood that
fraudsters will sign up for “pay as you
drive” insurance models? And, can in-
surance carriers afford to wait for lengthy
telematics installations and data collected
over a period of time to properly quote
and renew policies?
While auto carriers ramp up telematics
and usage-based insurance models, a sizable number of policyholders continue to
commit fraud because they can get away
with it. Fortunately, there are alternate ways
to catch insurance fraud using “where” data.
A more effective way
One type of “where” data is the kind we
all use and share everyday – checking
into a restaurant from a social media app,
or using a map app to get driving directions from one’s current location.
But the type of “where data” carriers
should care about the most is vehicle location data. By law, every vehicle must display
a license plate. Vehicle location data captures license plate information to provide
vehicle sightings and the associated location data, including the date, time and location where the vehicle was sighted. Unlike
telematics or “pay-as-you-drive” plans, the
driver is not required or ever asked to opt
in; if someone drives a vehicle, he or she is
automatically opted in to this type of data.
Rather than hoping policyholders opt
in to telematics or “pay as you drive” programs, carriers can cut down on garaging
fraud at the quote and renewal by using
WE SEE YOU:
CATCHING GARAGING FRAUD
BY ALEX YOUNG