Precision Enables Insurer to Fast-Track Applications & Reduce Bad Debt

Synectics Solutions has revealed strong predictive analytics results for one of the UK’s largest insurance retailers.

Proof-of-concept results demonstrate that Precision could enable one of the UK's largest insurers to fast-track 74% of applications while simultaneously reducing bad debt by 66%.

THE SITUATION

With levels of fraud rising year-on-year, organisations are turning to technology to prevent fraud and increase operational efficiencies.

This trend has been exacerbated by the worsening cost-of-living crisis, with more than one in ten adults aged 25-44 admitting that the cost-of-living crisis might cause them to default on finance repayments.

To counteract this, a major insurance provider, which has been running for over 60 years, sought to improve its customer onboarding process and predict which individuals are going to enter the bad debt process earlier.

THE SOLUTION

The company teamed up with Synectics Solutions, which has been a leader in using data for fraud prevention and customer insight purposes for over 30 years.

Initial proof-of-concept results using Synectics’ predictive analytics solution, Precision, have been overwhelmingly positive.

Precision taps into a wide source of relevant and timely data, including syndicated data from Synectics’ proprietary National SIRA risk intelligence database, to help businesses detect fraud and accurately predict the future.

THE RESULTS

After applying Precision to the insurer’s Motor Policy portfolio, results demonstrated that 74% of applicants received a low-risk score and could therefore be fast-tracked.

This will not only speed up and improve the customer onboarding process, but it will do this whilst retaining just a 1% bad debt rate.

Delving deeper into the outputs, results highlighted that using Precision to stop the 13% of applications that generated a high-risk score would capture 66% of those that would later go on to enter the bad debt process, saving the insurer a significant amount of money.

Further analysis found that 29% of applications that would normally be rejected via the insurer’s existing vetting methods would be classed as low risk in Precision, with only 3% of those going on to be bad debt. This highlights a great potential to increase customer onboarding without compromising on risk.

Robert Bevington, Precision Product Manager at Synectics Solutions, said:

"I am delighted that the proof-of-concept results demonstrate how Precision’s powerful predictive analytics capabilities, combined with leveraged intelligence from National SIRA, are extremely effective in helping our client prevent fraud, reduce friction during the customer onboarding process and highlight bad debt earlier.

"And with the cost-of-living crisis inevitably going to lead to an increase in fraud, adopting preventative strategies such as Precision has never been more important to help insurers defend against this and save costs.”

WHAT IS PRECISION?

Precision is an award-winning, powerful predictive analytics tool which capitalises on the might of data to provide unrivalled insight to prevent fraud & bad debt, improve customer journeys, generate insight and make accurate predictions.

What’s more, the Software as a Service (SaaS) model of Precision makes it incredibly cost effective by removing the need to recruit in-house data science experts or deploy expensive hardware. Precision is calibrated to align with each client’s risk appetite.