Streamlining E-Insurance: Protecting Consumers Against Digital Fraud
The introduction of mandatory e-insurance by the Insurance Regulatory and Development Authority of India (IRDAI) marks a significant milestone towards improving the insurance sector and streamlining processes for consumers. E-insurance, the digital transformation of traditional insurance processes, will revolutionise the industry by digitising policy documentation and streamlining customer interactions. But this paradigm shift raises a crucial concern: How can consumers be safeguarded from the escalating threat of digital fraud?
First, let us acknowledge the benefits of e-insurance. Besides improving the efficiency and accuracy of policy management, here are some benefits that e-insurance offers customers:
While e-insurance offers convenience, it creates a target for cybercriminals. Cybercriminals are becoming increasingly sophisticated in their methods, posing a grave threat to the security of sensitive information. Insurance companies must prioritise data security with best-in-class encryption standards.
To combat this, insurance companies must leverage cutting-edge technology and adopt stringent security measures.
Here’s how technology can aid businesses in curtailing fraud
Device Fingerprinting
eSystems can assign unique identifiers to users’ devices, making it hard for fraudsters to submit multiple applications from the same machine. Additionally, frictionless-authentication based on SIM binding helps curtail Man jn the Middle fraud attacks
Automated Claim Processing
E-platforms can automate claim processing with built-in checks for validity. For example, geo-location data from a smartphone can verify if a car theft claim aligns with the reported location
Image Recognition
Image recognition software can analyse photos submitted with claims to detect inconsistencies or signs of tampering. This can be helpful for property damage or health insurance claims
Network Analysis
Advanced fraud rings may involve multiple people submitting fake claims. Network analysis tools can identify connections between seemingly unrelated claims, revealing patterns that suggest fraud
While the advent of e-insurance heralds a new era of convenience and efficiency, it also necessitates vigilant measures to combat digital fraud. By harnessing the power of technology and implementing stringent security protocols, insurers can safeguard consumer interests and uphold the integrity of the insurance industry.
Ultimately, a collaborative effort between regulators, insurers, and consumers is imperative to fortify defences against the burgeoning threat of digital fraud in the realm of e-insurance.
The author is Founder & CEO, Bureau
