Markerstudy adopts SSP Verify to help combat fraud

  • SSP Verify will augment Markerstudy’s existing fraud protection measures by helping eliminate ‘pre-inception’ discrepancies in insurance applications
  • Markerstudy was able to identify in excess of one million pounds of mispriced premiums in one month period

Insurance technology specialist, SSP, has signed a new deal with insurance group, Markerstudy. The deal will see SSP Verify anti-fraud technology activated across product lines in the Markerstudy, Zenith and Chaucer brands.

SSP processes more than 3 million quotes a day, allowing SSP Verify to construct a single customer view which tracks suspicious behaviour across all aggregator and SSP broker channels. This data can then be fed into the quote process. SSP Verify is designed to highlight inaccuracies that artificially reduce a customer’s premium and underestimate their risk.

In a recent trial, Markerstudy identified premiums of over one million pounds involving ‘pre-inception’ discrepancies in insurance applications. According to SSP, around 35% of converted motor insurance applications in the UK include at least one inaccuracy. With the new deal in place, SSP will work with Markerstudy by integrating SSP Verify into its quote systems.

Adrian Coupland, Managing Director, Data and Distribution at SSP Worldwide commented:
“Even though the majority of insurance customers are honest, insurance fraud remains a chronic problem in the industry. We developed SSP Verify to provide insurers with a solution which operates in real time, highlighting inaccurate applications before quotes are returned.

“Importantly, our technology allows Markerstudy to fine tune the system to its needs. Whether that’s moving suspicious applications onto a different channel, pricing risk more accurately or declining a quote.”

Gary Humphreys, Group Underwriting Director at Markerstudy Group said:
“We have long recognised fraud as a problem in the insurance industry and SSP is assisting us as part of our wider existing strategy to tackle it.  SSP Verify provides an additional tool to monitor fraud in real time and to prevent it getting onto our books.  Reducing application fraud helps us protect our business and provides a fairer service to our customers.”

Hawkwell becomes fourth insurer to combat fraud with SSP Verify

Insurance technology specialist SSP today announces that motor insurer Hawkwell has become the fourth insurer to sign up to use the market-leading fraud-combatting capability SSP Verify.

By adopting this solution, Hawkwell will be able to create a holistic single customer view to identify in real-time fraudulent applications pre-inception. With this insight, Hawkwell can price premiums correctly and avoid fraudulent applications.

SSP Verify allows the behaviour of individual customers to be captured and monitored in real-time across all insurance channels, providing sophisticated insight into when application fraud is occurring. The rules within the solution differentiate between honest mistakes and deliberately fraudulent behaviour, and can be tailored to reflect each insurer’s tolerance to application fraud.

The price of not implementing such a solution is immense. Last September, data from SSP revealed that the industry loses a potential £1.42bn in premiums as a result of motor insurance application fraud, in addition to potential exposure to claims costs in the region of £1.36bn.

Commenting on the deal, Adrian Coupland, Managing Director, Data and Distribution at SSP said:
“The level of insight provided by SSP Verify means that all insurers who sign up will improve their underwriting results by identifying problem customers before exposing themselves to the risk and then price or decline accordingly.

“As a result, these early adopters of our system are able to focus on building books of quality clients, with unwanted business passing back into the market to be written by insurers who remain unable to identify fraudulent applicants.

“Application fraud will rapidly become more acute for insurers who do not subscribe to such a service.

“Already the amount of attempted dishonest motor insurance applications uncovered by insurers rose by 18% year-on-year in 2014 to 212,0001. However, SSP has discovered that fraudsters are now targeting the details that are not so easy for insurers to verify, so these ABI figures are likely to be just the tip of the iceberg.”

Tony Smith, Chief Executive at Hawkwell said:
“Application fraud is endemic in the industry and the SSP solution enables us to combat this. While other options just check limited criteria like addresses and NCD, SSP Verify actively tracks data manipulation in real-time for the more difficult to identify criteria.

“We can’t afford to invest huge sums in buying information from all the available databases. With SSP Verify, we get a view across the whole insurance market in one place, providing essential protection that we can afford.”

1https://www.abi.org.uk/News/News-releases/2015/08/Cutting-corners-to-get-cheaper-motor-insurance-backfiring-on-thousands-of-motorists-warns-the-ABI

RACT Insurance goes live with SSP Pure Insurance solution

RACT Insurance, the insurance subsidiary of the Royal Automobile Club Tasmania, has gone live with the SSP Pure Insurance offering and e5 Workflow solution after a 19 months implementation phase.

RACT, Tasmania’s main motoring organisation, offers a wide range of motoring services, insurance, tourism and travel products, with its insurance subsidiary providing its members with home, contents and vehicle insurance options.

SSP Pure Insurance is an easily implemented, flexible end-to-end core insurance system solution, providing all of the key components needed to manage an insurance operation including policy administration, product development, claims management, finance, reinsurance and co-insurance as well as inbuilt document management, task management and business analytics.

A fully scalable, web-enabled solution, SSP Pure Insurance provides a modern platform for RACTI to manage the entire business lifecycle from a single solution.

SSP Pure Insurance and e5 Workflow forms a fully integrated solution, with SSP Pure Insurance providing the core insurance capabilities and e5 managing work allocation, task generation and workflow configuration and management.

The highly sophisticated claims workflow facilities will enable RACTI to realise operational efficiencies and generate information intelligence. These include improving speed to market, distributing products more efficiently and dynamically managing risk rating.

Paul Miller, SSP general manager, Asia Pacific said technology was playing an increasingly important role in providing insurers with a platform meeting the needs associated with constant industry changes and modernised products while providing automation of processes and tasks to help reduce operating expenses.

“RACTI was constrained by its legacy platforms, which lacked the flexibility and speed required to respond to an ever changing and competitive marketplace.

“SSP was appointed in September 2013 to replace RACTI’s legacy system and we are pleased that we’ve been able to implement a customised, fully integrated solution for RACTI,” Mr Miller said.

Craig Van Zeyl, Founder and CEO of e5 said it was exciting to see a customer take advantage of the innovation opportunities provided by the e5 and SSP partnership.

“The combination of e5 and SSP Pure Insurance provides a truly world class insurance processing capability, and puts RACTI ahead of its competitors,” Mr Van Zeyl said.

According to Trent Sayers, Chief Executive Officer, RACT Insurance, there was a growing need within motoring organisations to understand its members better, the services they use and benefits they receive, and to be able to offer more customised policies.

“Upgrading our systems to SSP Pure Insurance and e5 workflow, and integrating these into our membership system, provides us a strategic platform to compete and grow.

“The implementation of a leading policy administration system allows us to innovate, improve operational efficiencies, and most importantly enhance customer service,” Mr Sayers said.

The contract between SSP and RACT Insurance was signed in September 2013 with the implementation phase finalising in June 2015.

SSP and Capgemini team up to accelerate innovation for insurance companies

SSP, a leading global provider of insurance technology, and Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, have entered into a services agreement focused on enabling general insurers to accelerate their digital ambition and replace legacy systems.

The relationship leverages Capgemini’s deep insurance expertise as both a systems integrator and process improvement expert across the insurance value chain to bring SSP’s Select Insurance platform and distribution/data services to insurers operating in the highly competitive UK personal lines market.

SSP Select Insurance platform provides a powerful combination of flexible, agile core underwriting, policy administration and claims functionality, coupled with sophisticated multichannel distribution that supports customers interacting direct, through aggregators, brokers or affinity partners – and via PC, smart phones or tablet.

Two leading UK insurers have chosen SSP Select Insurance in the last three months, and implementations are already underway on digital programs focused on both the UK household and automotive business, where Capgemini is already actively supporting work.

As a systems integrator, Capgemini brings extensive insights and best practices for the digital insurer seeking to access and accelerate their digital capabilities across channels. With strong experience in working with leading insurers in optimising data, Capgemini uses proven methodology to shape market leading customer solutions with SSP to ensure rapid time to value for these clients.

Capgemini will work with SSP and our joint customers to accelerate implementations of their new digital platforms, alongside the migration of existing business and of their legacy systems.

“In today’s increasingly competitive market, flexibility, and the ability to provide a consistent experience to customers across all channels is more important than ever. We are delighted to be working with Capgemini to add to our ability to create innovative digital insurance solutions for our customers, and to accelerate the pace with which we are able to help them to realise these ambitions,” said Stephen Lathrope, Managing Director of Insurer at SSP.

“Insurers are looking for cost-effective ways to create the capabilities that they need in order to drive profitable growth. Legacy platforms don’t provide the flexibility or agility that insurers need in order to compete successfully, but implementing new platforms and achieving a smooth migration can be challenging,” said Nigel Walsh, Vice President and Head of UK Insurance, Capgemini.

“Capgemini has a strong record in working with insurers from digital strategy to design, implement, and run business critical systems. We are delighted to be working with SSP and the Select Insurance product”.

SSP investment drives customer functionality upgrades

With the insurance and technology landscape constantly evolving, SSP, a leading global provider of insurance software solutions, has invested $7.2m (£4.8m) in releases and upgrades for its Pure Insurance product. In the last year alone, this continued investment has enabled eight long-term SSP customers to access a new set of functionality that is keeping them competitive in the marketplace.

Those benefiting from the rich, broad functionality include customers across the UK, Caribbean, Africa and Australia, reflecting SSP Pure Insurance’s position as one of the leading global policy administration systems. This position was supported by Celent’s 2014 reports on policy administration systems.

Three of these customers, including FM Group in Bermuda, have been with SSP since the 1990s through three iterations of technology, ensuring their systems continue to support their growth plans as the industry evolves. Over that time, the upgrade process has seen them move from a UNIX-based green screen system to a Windows-based VB6 one, and now browser-based .Net technology.

With support for both commercial and personal lines, the modern web-based system enables data enrichment, as well as providing online broker and consumer access through portals. As a result, insurers can cost-effectively grow their business operations and rapidly provide external services, while taking full advantage of better risk selection and pricing.

Automating manual processes and removing duplication delivers lower administration costs and ensures policyholders benefit from a quicker and more efficient service. For example, the dynamic automation of monthly board packs provides a single view of the business at the touch of a button, enabling insurers to make immediate, informed decisions on their business strategy.

SSP’s investment in upgrading its software also ensures customers can launch products more quickly through the newly enhanced product builder functionality. Building and maintaining products using an Excel template offers a more agile approach that improves speed to market and delivers a competitive edge.

This capability also extends to claims management, driving reductions in average costs per head through dynamic triaging. Claims are directed to the right person and process depending on their type, rather than being progressed in a one-size-fits-all uniform manner.

All of these benefits are obtained through a smooth automated upgrade followed by significant testing that is completed rapidly, with little disruption to business as usual.

Nigel Kohler, Sales Director of SSP’s Insurer Division, said:
“Technology challenges can be a key issue for established insurers, as older inflexible systems are a major hurdle in their ability to compete with more agile new entrants to the market.

“At SSP, we are continuing to make significant investments in our solutions, which includes three major releases for SSP Pure Insurance since its launch in 2011, to enable our customers to build on the technology investment they made some years ago.

“This allows insurers to benefit from new technology and functionality, ensuring they have systems in place to be competitive in their markets and deliver on their ongoing growth and efficiency plans.”

SSP pursue expansion strategy with new investment deal

SSP, a market leading global technology systems and solution provider, has successfully completed a management buyout backed by LDC and led by Chief Executive and founding Director Laurence Walker.

Founded over 30 years ago, SSP provides market leading technology systems and solutions across the entire general insurance industry value chain and the wider financial services market, enabling customers to upgrade their systems and benefit from SSP’s advanced data analytics services to improve their customer service, distribution and profitability.

SSP operates globally, processing more than 10 million electronic policy transactions each year for a diverse, long-standing customer base including 8 of the top 10 UK Insurers and Broker operations that equate to more than 40% share of the UK Broker market.

LDC, which has taken a majority equity stake in the business, is a well-established private equity firm with a leading position in the mid-market sector. The existing management team, which brings a combination of industry and specialist expertise, will work with the new equity partners.

The investment will support the management team and create the platform to accelerate the growth of SSP in the UK and internationally, building on its strong customer base and introducing intelligent data services, including telematics and fraud detection, to the market to help insurance organisations better assess risks.

Laurence Walker, Chief Executive at SSP, said:
“LDC’s investment is a strong endorsement of the attractiveness of SSP and the strength of the business. LDC will help us pursue our growth strategy, both organically and through M&A activity, and our customers will see the benefits of our continuing investment in SSP. Having worked previously with them I am looking forward to working with the LDC team again. It creates a great platform for further expansion of our business, in line with our business plans.”

Dale Alderson, Investment Director at LDC, said:
“The global insurance industry is under increasing pressure to modernise its use of data to become more efficient, cut down costs, expand distribution and secure more accurate risk analysis. SSP is at the forefront of this market, and with our support, will help transform the way that insurers operate and dramatically improve customer experience.”

John Garner, Director at LDC, said:
“Over the last decade, SSP has evolved into a truly global leader that has capitalised on the ever-increasing technological demands of the insurance industry, as well as the financial services sector. Laurence leads a highly ambitious team that is eager to build on the success of its international network. We are excited to back the business once again and support it through another era of growth.”

SSP investment in insurer team drives quality and efficiency

SSP has strengthened its insurer division with the appointments of Paul Bryson as Head of Delivery and Paul White as Product Manager for SSP Pure Insurance.

The move confirms the commitment of SSP, a leading global provider of insurance technology solutions, to the development of its core insurer products to meet strong market demand. This approach is supported by significant financial backing, with almost £5m of investment in SSP Pure Insurance since 2011.

Reporting directly to Stephen Lathrope, Managing Director of SSP’s Insurer Division, Paul Bryson will take over the leadership and management of the SSP Select Insurance and Pure Insurance products. He will also be responsible for overseeing resources across SSP’s development and services operations, driving continued improvement in development and delivery processes, methodologies, tools and practices.

Bryson brings 35 years of financial services software experience to the role, gained in both small UK software houses and major global corporations.

“I’ve followed SSP’s fortunes for a very long time and have admired the evolution of the company,” said Bryson. “As a result, I was attracted by the opportunity to get into an agile, growing company with strong leadership.

“I’m joining SSP at a great time: the product range is powerful and continuing to mature, and we have some innovative new offerings to take to market.”

Speaking about the appointment, Stephen Lathrope said: “Paul has an outstanding track record of success in our industry and I’m delighted that he’s joined the team at this exciting stage in our journey as a business.”

The insurer division is further strengthened by the appointment of Paul White as the new Product Manager for SSP Pure Insurance.

White has 27 years’ experience in the general insurance industry, working for a number of insurers, including Ageas, Aviva, Guardian and Sun Alliance, prior to joining SSP seven years ago as a Business Consultant.

“Over the last seven years I have worked on many initiatives and client implementation projects for SSP Select Insurance. I am looking forward to using all my experience to drive forward the strategy for our other core insurer product, SSP Pure Insurance, both in the short and long term,” said White.

Kevin Gaut, Chief Technology Officer, said: “Paul comes from a strong insurance business background, is very knowledgeable of SSP and will bring these capabilities to the role.”

Someone else should be checking my insurance application for accuracy, say nearly a third of consumers

New research from insurance technology provider SSP has found that 29% of consumers mistakenly believe that they are not responsible for checking the accuracy of their own motor insurance applications and more than 1 in 10 people (14%) don’t realise that inaccuracies in their personal details could invalidate their policy.

22% of people think their insurer is responsible for checking the accuracy of their motor insurance application, with a further 7% believing responsibility lies with another third party such as their broker.

This suggests that many consumers are unwittingly putting themselves at risk of committing insurance fraud or incurring unexpected costs on claims if information they have submitted is found to be inaccurate. Young drivers are particularly prone to this mistake with 30% of drivers between the ages of 18-24 and a third between 25-34 thinking data validation is the responsibility of their insurer. The research also shows that this lack of awareness is having a serious impact at the claims stage with younger consumers twice as likely to say they have had a claim turned down as a result of inaccuracies in their application.

Lack of awareness is consistent whether consumers go through brokers, price comparison websites or direct to their insurer. 25% of consumers who go direct to their insurer say they expect someone else to check the accuracy of their application, compared to 28% and 29% for PCWs and brokers respectively.

Several survey respondents highlighted the role they think insurers should play in raising awareness of the importance of accuracy when applying for insurance, with one commenting that “The public need to know what insurers mean by inaccuracies!”, whilst another said that a policy being invalidated by inaccuracies in details is “Not totally fair… the insurance company should go through it all with the customer to check at the start”.

However, there are a significant minority of people (15%) who believe the risk of lying on their insurance applications are worth taking in order to bring down the overall cost of their insurance. According to data mined through SSP’s Intelligent Quotes Hub, each error on an application form (either intentional or accidental) cuts the annual premium paid by around 46% and could be costing insurers over a billion pounds a year. As the industry prepares more sophisticated tools to deal with the rising problem of fraud, more customers who are being economical with the truth are about to face the consequences.

Adrian Coupland, Head of Data Strategy for SSP said:
“Insurers simply cannot take the accuracy of their data for granted. Across all the channels we tested, at least a quarter of consumers thought their insurer, broker or other intermediary were responsible for the accuracy of their application.

“On the contrary, unless they have the appropriate systems in place, insurers are rarely able to apply more than a credit check until claims stage, missing other important factors like vehicle usage, main driver, overnight vehicle location and occupation — leaving them out of pocket when it comes to premiums.

“It’s important the industry as a whole does more to verify risks and root out potential fraud, ideally at sale and pre-inception, but it is also important to support consumers by helping them ensure the information they submit is as accurate as possible.”