Industry Use Case

Identity Verification In The Insurance Industry

May 25, 2022
Identity Verification In The Insurance Industry

Rather than physical, policyholders favor a  digital mode of interaction. However, verification issues often stick out like a sore thumb, leading to high onboarding dropout rates. This blog post explores how you can leverage an AI-powered verification solution to solve this.

In this report by Statista, 44% of Americans between 18 and 29, who had some form of insurance, bought their policies online. As broadband penetration rates improve even further, this percentage is set to continue to increase. 

While the extent of the success of consumer-facing banking apps is still debatable, insurance as a section of finance leads the pack in digital transformation. 

The goal of any insurance business is to build and nurture a purely digital relationship with its customer base. Verifying their identity is always a good place to start — and without any physical interaction. 

Given today’s ever-evolving business landscape and the constant change in demographic preferences of policyholders, there’s a need for a scalable, AI-driven identity verification solution that helps to confirm identity without time lags. 

Remote Identity Verification: A guide for insurance providers

Remote Identity Verification: A guide for insurance providers

Find out how to lower drop-out rates in your onboarding and save potential customers from slipping through your sales funnel.

The need for an AI-powered ID verification solution

While digitalization changes how relationships between insurers and the insured are conducted, one thing remains – the need for customer verification. Just like in every other aspect of the finance sector, insurers need to follow strict legal requirements on customer verification.

But, user verification, traditionally done, can take up a significant amount of time; greater than 20 minutes in most cases. In a world where customers expect digital onboarding processes to take 60 seconds or even less, this is simply untenable. And it costs insurers a real lot in user lifetime value. 

It’s all about a fast, secure, and seamless experience. The best insurance businesses get this. The 4th edition of Signicat’s Study, “The Battle to Onboard 2020: the impact of COVID-19 and beyond” surveys 4,000 adults across Europe to gauage customer opinion about onboarding. 

The study revealed that in 2020, 68% of consumers expect 100% digital onboarding. Thankfully, AI presents a way to meet your customers’ expectations.

11-percent-digital-onboarding

With solutions like Identity Verification, insurers can shorten their onboarding processes to just seconds without compromising security. Here’s how:

ID Scanning and document verification

Rather than have users fill several pages of forms and then mail documents over for verification, ID scanning & verification helps your policyholders by simply scanning their identifying documents using their phone camera.

The software reads both documents with Machine Readable Zones (MRZ) and without. The list of documents that your users can scan and verify is already 2000+ documents long and it includes passports, driver’s licenses, visas, work permits, etc.

It copies user details from their documents and then fills out a sign-up form with that data, so users scan their way to your service without typing. Besides bringing great UX, it also helps you get accurate customer data eliminating the possibility of typos.

great-ux

With built-in security safeguards, the software checks that these documents are genuine and not tampered with in real-time while your user holds a document in front of the camera. It’s already being widely adopted across Europe.

Selfie capture & liveness detection

When users complete the first step, the system then turns back to their front cameras to check if the person in front of the camera is present. Previously, digital companies have had to rely on video calls to verify the identities of their users—a step that has proven impractical.

With this software, users are simply required to zoom in and fit their faces in the designated space as though they were taking a selfie. The liveness detection algorithm then checks for certain parameters to verify genuineness. The AI has such high accuracy — a 90% success rate on the first try, and then a further 5% of users succeed on their second try.

Again, the AI has inbuilt security safeguards against fraudulent activity, which prevents users from circumventing security checks using printed photos, deepfakes, wax masks, video projections, high-res videos and so on.

Here’s the good bit: It doesn’t require users to possess high-end gadgets. Customers can access this feature comfortably with a front-facing camera of at least 0.3 MP and 640×360 resolution.

security-checks

Face matching

In traditional verification processes, physical agents compare the images on submitted documents with users’ faces to check for authenticity. The face-matching feature replicates that digitally. 

With the user’s documents captured and face scanned, the software then compares certain distinct features on both photos for sameness, to ensure that the said user is the valid holder of the submitted document(s). 

Unlike the two earlier steps, this step does not require any action from the user—it executes in the background.

face-matching

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In a digital economy, geographical borders are nothing more than mere fuzzy lines on the map. The internet has enabled businesses to reach wider audiences far across the planet. 

For insurers, this only makes user verification an even more important necessity. Much like how old keys cannot open new locks, the old verification methods only mean high dropout/abandonment rates and lost revenue. Here’s where our technology comes in to help you harness AI, face-based biometrics and cutting-edge scanning technology.

The Identity Verification suite creates a smooth experience, starting with capturing data from the ID document to comparing the person in front of the camera with an ID photo. This enables you to onboard and verify customers from pretty much anywhere in less than three minutes. 

Curious to find out more about how we help you arrest drop-out rates in your onboarding, and save potentially loyal customers from slipping through your sales funnel? Dig into our guide on identity verification for Insurance providers!

Integrate ID verification into your existing application