Challenge

For insurance companies, policy lapses and fraudulent claims by non-existent customers can be important causes of financial losses. One of the main reasons for policy lapses is non-delivery of policy documents or premium due date intimations due to non-existent or incorrect addresses. Return of policies is, therefore an indication of possible policy lapses or fraud customers.

One of India's leading private sector insurance companies was riddled with the problem of non-delivered (returned) policies and was seeking a partner to help address this problem.

Solution

CRP devised a simple but pioneering solution for the insurance company and in effect for the insurance industry - it worked on the 'Return to Origin' (RTO) data provided by courier companies. Non-delivered documents along with reasons for non-delivery submitted by a courier company are termed as RTO data. CRP analyzed the concerned company's RTO data and filtered records of 'non-delivery due to incomplete or incorrect addresses'. CRP then deployed its 'on-field' team to visit these addresses and verify them. Post-verification, the company was provided a database of correct/updated addresses and any cases of fake addresses were duly reported. CRP now conducts these checks on a periodic basis for the company.

Analyzing the RTO data and conducting physical verification of incomplete/incorrect address cases has now become an established practice in the insurance industry.

Advantage

The insurance company now has an updated database of correct addresses. This ensures that policies and premium due date intimations reach customers and chances of policy lapses are reduced. As cases of fake addresses are brought to notice at an early stage, the insurance company can take necessary actions to pre-empt any fraudulent claims. CRP's pan-India network of branches and 'on field' teams give the benefit of local area knowledge and quick verifications, thus creating efficiencies in time and cost.