Findings from the latest Shift Technology Insurance Perspectives report show that underwriting professionals are under incredible pressure to meet customer expectations for quick application approvals, while keeping their portfolio as profitable as possible.
To meet these goals and to be sure applications themselves are legitimate, underwriters must be confident that the applicant is who they say they are. It also must be clear that the applications do not contain misrepresentations or omissions, which may lead to premium leakage or other losses at the time of a claim. And underwriters need to know that the applicant hasn’t already tried to scam them before – an issue costing the insurance industry over $40 billion yearly, as reported by the FBI.
According to the report, the most prevalent risks underwriters are facing today include hyper endorsement, misrepresentation and applications from known fraudsters, as well as criminal networks and the schemes they perpetuate, such as Ghost Broking. Let’s look at a closer look at these schemes.
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