Policyholders prefer a digital style of interaction over a physical one. However, identity verification problems frequently stand out, which causes significant onboarding dropout rates. This blog article examines how to resolve this using an AI-powered verification method.
According to a recent study, 44% of those between the ages of 18 and 29 who had insurance purchased their plans online. This proportion is expected to rise as broadband penetration rates continue to rise.
Insurance as a subset of finance is leading the pack in terms of digital transformation, even though the extent of the success of consumer-facing banking applications is still up for debate.
Any insurance company’s objective is to develop and maintain a wholly digital interaction with its clientele. Always a good place to start without any physical contact is to confirm their digital ID.
A scalable, AI-driven identity verification system that helps to authenticate IDs and faces using Face Match APIs without time delays is required given today’s constantly changing business environment and the demographic preferences of policyholders.
A Manual for Insurance Companies on Remote Identity Verification
The requirement for AI-powered ID verification technology
Policyholders prefer electronic communication over in-person encounters. Verification problems, however, frequently stand out like a sore thumb, resulting in high digital onboarding dropout rates. In order to address this, this blog article examines how you can use an AI-powered verification solution.
In a recent study, 44% of those with insurance between the ages of 18 and 29 purchased their coverage online. This proportion is anticipated to rise even more as broadband penetration rates rise.
Insurance as a subset of finance is at the forefront of digital transformation, even if it is still unclear to what degree consumer-facing banking applications have been successful.
According to research, 68% of customers anticipate a fully digital onboarding process by 2020. Fortunately, AI offers a solution to satisfy client expectations.
Insurance companies may reduce the time it takes to onboard new customers to just a few seconds by using tools like Identity Verification. This is how:
Verification of documents & ID Verification
ID scanning & verification assists your policyholders by easily scanning their identifying papers using their phone camera, saving consumers from having to fill out many pages of paperwork and ship over supporting documentation for verification.
Both papers with and without Machine Readable Zones (MRZ) can be read by the programme. There are currently 2000+ papers on the list that your users may scan and check, including passports, driver’s licences, visas, work permits, etc.
Users scan their way to your service without typing since it copies user information from their papers and fills up the sign-up form with that information. Along with providing an excellent user experience, it assists in obtaining correct client data by minimising the chance of mistakes.
The programme uses built-in security measures to verify these ID’ authenticity and check for tampering in real-time using OCR when your user holds a document in front of the camera. In Europe, it has already been broadly embraced.
Selfie Check & Liveness Detection
Once users have finished the initial step, the system returns to their front cameras to see if the subject is indeed there. Before, digital businesses had to rely on video conversations to confirm the users’ identities—a step that turned out to be unworkable.
Users of this programme need just zoom in so they can fit their faces in the space as if they were shooting a selfie. The liveness detection system then verifies authenticity by looking for specific criteria. The AI is so accurate; people succeed 90% of the time on the first try and 5% of the time on the second try.
Once again, the AI has built-in security measures to thwart fraudulent behaviour, so users cannot get beyond security checks by employing printed pictures, deep fakes, wax masks, video projections, high-resolution films, and other methods.
The good news is that it doesn’t require consumers to have expensive equipment. Customers may easily use this function with a front-facing camera that is at least 0.3 MP and has a resolution of 640×360.
In conventional verification procedures, physical agents verify the validity of supplied papers by comparing the photographs to the users’ faces. That is digitally replicated via the face-matching function.
The programme then examines specific aspects of both photographs for similarity after scanning the user’s face and capturing their papers to make sure they are the rightful owners of the provided documents (s).
In contrast to the first two phases, this one runs automatically in the background without any input from the user.
Insurance Company’s need to Improve the Online Experience for Customers
Insurance firms want to give their clients a seamless online experience. 77% of insurance businesses claim that enhancing customer experience is a significant motivator in their digital transformation, according to the analytics company Celent.
Price frequently loses to customer experience. Eight out of ten consumers, according to research, are prepared to pay extra for superior customer service. Customers are miffed by businesses who don’t value their loyalty or pay attention to their criticism, according to their survey on disengaged customers. Most customers are prepared to spend more money with a business in exchange for a better customer experience.
Streamline Digital Identity Verification Complexities
To be competitive, insurers must make technological investments, and many are turning to digital identity verification. However, the majority of identity authentication procedures make customers jump through several hoops, which has a negative impact on the customer experience. Delivering a seamless client experience, however, requires insurers to strike a careful balance. Knowing which customer should slow down and which to provide a “fast pass” is so crucial.
Taking Digital Identity Authentication to the Next Level
Advanced technologies are used for identity-proofing to ensure a frictionless client onboarding process. AI, blockchain, image analytics, machine learning, and others are among these to carry out the following three tasks:
- ID Verification
- Identity Verification
- Document Verification
In the past, insurers have used KBA (knowledge base authentication) essential details about a particular person to confirm that person’s identification. By utilising KYC(know your customer), a number of businesses, like insurance, are elevating identity verification. The procedure through which a company confirms the digital identity and IDs of its clients and evaluates potential hazards is known as KYC. Additionally, it enables businesses to safeguard themselves by confirming that they are transacting with lawful parties and organisations.
IDcentral provides insurance companies with identity verification and eKYC APIs that allow conducting secure business with verified customers. Enabling a world class face match solution also allows for rapid customer scaling as well as elevated customer experiences through out the digital onboarding process.
Try IDcentral’s Digital Identity Verification solution, with Face Match & ID verification
Sumanth Kumar is a Digital Marketing Consultant at IDcentral (A Subex Company). With hands-on experience with all of IDcentral’s solutions, he loves to compare and create indispensable digital content.