Case Study: Saga sees instant savings from using Experian’s FraudNet solutions in their processing
Saga is a British company focused on supporting the needs of those aged 50 and over and currently serves more than 2.7 million customers. Saga provides a range of insurance products designed specifically for their customers.
Today, the UK Insurance industry suffers fraud losses of more than £1.3bn per year. Application fraud and Ghost Broking were specific significant challenges for Saga and contribute towards the rising losses they faced. The rising scale of the problem today across the industry led Saga to review their fraud management controls to better understand the points of attack, but also vulnerability to further attack.
In addition to this fraudsters using compromised identities and/or stolen identities, was something they were keen to stop. Prior to working with Experian, genuine identities - such as these - were not being identified at the point of application which was adding to the ongoing challenge caused from fraud across their portfolio.
After a series of consultative meetings to better understand the problem – the scale of it and complexity of it, Experian proposed a way for Saga to better detect and prevent fraud while, not hindering the customer journey. The solution that was to be used was our FraudNet capability.
Benefits of FraudNet:
- Lower fraud losses – FraudNet’s capture rates exceed industry averages.
- Protect the Customer Experience – FraudNet provides a frictionless solution to improve customer experience.
- Frustrated Fraudsters – FraudNet reduces long-term attack rates for clients, as fraudsters move on.
- Improve operational efficiency – FraudNet reduces waste and improves risk operation
FraudNet provided a comprehensive solution that included fraud capture rates of which are above industry averages. It does this by recognising people through understanding their digital device interactions. It can do this across multiple channels which was, and is, important given the omni-channel environment (people moving between channels) of customers and the weakness caused by this for fraud entry, as Fraudsters play the channels for weakness too.
As well as single case identification, FraudNet offered Saga the opportunity to link data behind the scenes to better analyse trends in fraud, across the portfolio, to identify common themes and possible fraud rings.
FraudNet is not only built purposely for the digital economy, but the intelligence it brings offers huge benefits – of which Saga have realised. In addition to preventing and detecting fraud, it has helped Saga to better automate fraud cases relieving the time burden and operational cost associated with manually reviewing each suspicious case. More importantly it relieves friction occurring as opposed to instilling it.
Saga saw an immediate benefit with FraudNet detecting a sizeable Ghost Broking ring within the first 30 days of going live. Saga created a dedicated team to manage FraudNet due to the increased amount of fraud being detected. In the short-term, Experian provided access to some of our experienced Fraud Team, while Saga secured investment for more resources which was successfully agreed by the Saga board as the team could identify the value of this investment.
With the positive results seen because of Saga’s fraud screening at the point of quote, Saga could also work smarter with it’s panel members which offered benefits to them that far surpass fraud losses in isolation.
“Experian and Saga formed a great partnership during this process. What was particularly beneficial was how Experian approached the project through not only a solution, but by providing the time through consultation to truly understand us, our needs and our business. The FraudNet system has proved its worth even in the short term and now we understand how we can continue to expand on this, but not impact our other objectives such as customer experience. We will be looking to keep building our controls that will better protect our genuine customers while detracting fraud.”
— Ste Teeling, Head of Financial Crime, Saga
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