Insurance businesses, by their very nature, are there to protect customers from a wide range of risks – whether it’s for property, health, vehicles or any other potential hazard that customers are wishing to protect themselves against.
For insurance companies themselves, it is important that they too assess the risks that have the potential to impact their organisations. Particularly given the fact that insurance companies are under a great deal of regulatory scrutiny – for example, in the UK, insurers are regulated by not one but two bodies (the Prudential Regulation Authority and the Financial Conduct Authority). Both of which have regulations in place to ensure firms are financially secure and provide an appropriate degree of protection to customers.
Given the great deal of sensitive customer data that insurers handle, the security of that data is a major priority and therefore mitigating the risk of frauds or hacks – from external and internal sources – is key. Particularly when you take into account latest industry figures that show the insurance industry is facing significant pressure from incidences of reporter frauds.
The annual CIFAS FraudScape report showed that identity fraud for insurers has increased substantially over the last three years. In 2018 alone over 4,800 cases were reported; an increase of 15% on the previous year. In addition false insurance claims rose by 27% from 2017 to 2018.
As an industry, scrutiny of data sources, handling, processing and storage is a paramount concern.
We spoke with the team at The Verex Group about the challenges they face in handling hundreds of telephone-based transactions every day. We wanted to understand what steps they have taken to not only secure the sensitive payment data and comply with PCI DSS rules, but to provide a quality experience that adheres to the regulatory frameworks set by the PRA and FCA.
Not an easy task, but one they have greatly succeeded in – with improved call rates, fewer failed payments, improved team morale in the contact centre and PCI DSS compliance assured. Read our case study to find out what steps they have taken.