What the End of the Driving License Counterpart Means for Insurance Fraud

On 8 June 2015 driving licence counterparts were officially abolished by the DVLA in favour of View Driver Record – an electronic database where people can access the information previously held on their paper counterpart licence, such as vehicle licence types, penalty points and convictions.

Together with My Licence – a service which enables insurers to better tackle insurance fraud by being able to validate information held on the counterpart licence centrally – these changes are set to have a significant impact on the quote and policy application process across the automotive insurance industry.

View Driver Record is hoped to make it easier for people to view and share their driving record. In addition, with My Licence, insurers can enjoy not having to rely on customers providing the correct information held on their driver’s record, but instead be able to easily verify this information via a central database.

It’s anticipated that My Licence will allow insurers to tackle insurance fraud through being able to better price policies based on more accurate risk information, as well as helping to lower premiums for customers who may have supplied incorrect information.

One thing is certain however; both changes are set to speed-up and streamline the quote and policy application process across the car insurance industry. With the on-boarding journey for customers becoming slicker and faster as more information is checked automatically online, it is likely that competition across the market will increase as savvy customers continue to shop around for the best deals.

However, it’s worth keeping in mind that View Driver Record and My Licence alone are not enough to effectively protect insurers and their customers from insurance fraud – whether that is first party fraud or third party fraud.

Experian recommends a holistic and layered approach to Know Your Customer (KYC) checks, which can be achieved without compromising the customer journey…

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Three tips for swift ID checks that will help to reduce insurance fraud:

1. Seek device intelligence

People do not like prolonged and complicated identity checks. They are accessing services through multiple channels; online, via mobile, over the telephone and face-to-face, and they expect the same high level of customer experience across them all. It is vital that the identity checking solutions you use work seamlessly without causing friction across the different channels to purchase.

Gaining insight into the devices your customers are using to transact with you can provide a level of confidence and trust in their identities. By using Device Intelligence, you can see what device a customer is using every time they log in to your site. Inconsistencies in devices are flagged to you in real-time, highlighting potential fraudulent activity so you can take further investigation where needed and make the most of your valuable resources.

2. Make an instant match

By performing identity checks against the information provided by customers instantly in the background, you can reduce fraudulent claims by blocking suspicious activity up-front or through pricing more effectively for the risk – all whilst allowing genuine customers to pass through checks seamlessly without disrupting their customer experience.

Additionally, allowing people to submit identity documents electronically by providing a photo of them, which can be accurately validated, can also help to speed-up and improve the customer on-boarding journey without compromising on security.

3. Use it to your advantage

The more confident you can be in the identities of your policy applicants the more accurate pricing decisions you can make based on the risk. This is a perfect opportunity to ensure that you offer the best prices to the right customers to successfully win their business.

And by sharing any identity theft instances you find with your peers across the insurance industry, you can be a part of ensuring the industry is safer and more competitive for everyone.

Need more information on Experian’s Identity and Fraud Solutions? Visit our website for further details.