How to Hack Home Insurance Fraud (While Making Your Customer Your Friend)

Home insurance fraud causes a $30 billion loss for insurers every year, from false claims of homeowners to fraudulent information to avoid higher premiums. Such a system is bound to fail unless technology disrupts it the way it has done with numerous other industries.
The Systemic Epidemic
A survey conducted by Property Casualty Insurers Association of America and FICO suggests a staggering 45% of insurers reporting fraud amounts between 5-10% of their claim costs. As fraud is a serious crime, some individual cases can be heartbreaking. A woman in Miami was arrested for not providing information to her insurer about the payment she obtained from her previous provider for hurricane damage and claiming it again. Of course, in cases of natural disasters people can become desperate and turn to radical practices.

The average national home insurance premium is $1,083. In some areas where cases of natural disasters are more common, such as Florida, the rate is around $2,055. If premiums are a stumbling stone for both customers and businesses, how can technology drive it down?

Existing Solutions
Even minor attempts by customers to save on insurance premiums like lying on applications can cause problems for providers.

Today, some anti-fraud tools are already available. Businesses apply technology to automate red flags and business rules, predictive modeling, use of social media and links analysis. Such software systems tend to be costly and consume a lot of effort from insurers, with 64% having their anti-fraud systems in-house. But is there a way to avoid fraud rather than continuously scan for it?
An Honest Future
BitClave Active Search Ecosystem can become a new way of having a relationship with your customers - honest and transparent. By incentivizing its users to provide open and truthful information via encryption, you can find customers who are motivated to tell you the truth. Our technology makes sure the information users provide is real without the risks of being hacked or shared with third parties - a trend the market is heading towards.

A successful relationship with a customer starts with the truth.