Margins within travel claims are slim. Legacy systems are just one of multiple aspects that make it difficult for claims handlers to reduce costs and streamline services without serious capital investment. As a result, third party authorisation checks, specifically fraud checks, are rarely used. Instead, determining fraud relies on claims handler experience and claimant provided information. Many claims are then paid when fraud goes undetected, increasing costs all along the insurance chain; from underwriter to policyholder.
The Pact™ CaaS platform would have denied the claim within minutes of it being filed. The ‘soldier’ did not live at a valid address and so the claim would have failed the Know Your Customer (KYC) check at the start. Additionally, the system would have flagged the three claims under review by three handlers under the same name. These checks would have denied the claim, however, even without these, our checks would have highlighted that the flight details didn’t exist and that the name on the bank account did not match the claimant.
These are simple measures which enable dramatic reductions in fraud; CIFAS suggest from 44% fraud reduction. Pact™ delivers superior user experience, customer insight and multi-layer security for both policyholder and claims handler, whilst releasing claims handlers from the fear of fraud and dependence on legacy systems.