In this article series, FTI Consulting's Insurance team explores how new behavioural data is generated and early signs of how this data could be the next wave of predictive power for issues like fraud, and maybe even claims costs.
In our article last week, we talked about the subtle difference between causality and association and shared some insights about how a new software product can help insurers and lenders capture behavioural data from applicants. This data shows a company the specific behavioural actions exhibited by an applicant during their web session, which can be especially helpful for detecting fraud.
So how does this work?
A simple example might be an applicant for private motor insurance who first enters a value of '3' in a question about violations or convictions in the last five years. Before submitting their data, they go back to the same question, hover, look at the levels offered (the most was '4+') and change their answer to '1' before hitting 'submit'.
Insurers would love to have this data, and with ForMotiv, this data is captured and made available in real-time. This not only facilitates post-sales investigations; data is collected in real-time, so the insurer can choose a different treatment for the customer, or even decline the application.
Originally published September 4, 2020.
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