Peterborough, Norfolk (PRWEB UK) 17 January 2014
When insurer iGO4 takes on new customers, its validation process is among the strictest in the industry. The company asks for copies of no-claims bonus documents, driver’s licenses and more. It’s has been lengthy, painstaking work, but STRATA has allowed consumers to directly upload documentation to IGO4, bypassing delivery of documents by post.
This results in an easier and faster user experience for customers, a more reliable book of clients and lower risk per customer than other insurers. This enables iGO4 to negotiate significantly reduced premiums from underwriters.
“One of our biggest challenges is to stop insurance quote manipulation,” says iGO4 Senior E-commerce Manager Ritz Steytler. ‘A small number of people try to get a cheaper price by changing their risk details. Unfortunately this price does not reflect the correct customer risk.
“People who provide incorrect information are raising industry costs for everyone” adds Ritz Steyler. “But iGO4 identifies these individuals and thus helps bring down the price. We take poor-risk consumers out of the equation, ensuring that honest customers always get the best deal possible and are adequately covered."
A report from research firm Consumer Intelligence found that 8% of UK drivers questioned in a survey admitted giving incorrect information on car insurance applications. This suggests that roughly 2.4 million people nationwide are at risk of providing incorrect information when they apply for insurance.
Common ‘mistakes’ amongst car insurance customers include: submitting an incorrect postcode (hoping a smarter area will attract a lower premium); omitting to mention points or disqualifications on their licence; providing an incorrect figure for their years of no-claims bonuses, giving a false description of their occupation and, even a false family name. They also underestimate their annual mileage, and give misleading information on their type of car, where it is parked overnight and how they use their vehicle.
The STRATA platform gives customers access to their own “self-service” portal and interact with their policy 24/7, which allows them to make changes to policies at any time. Confusion over job titles for instance and whether the car is used for commuting or for business use are two areas where mistakes can be entirely innocent, and there should be opportunities for customers to change and clarify such matters without any additional cost.
The difference can be striking, according to Steytler, who estimates that underwriters are taking a significantly higher risk with other insurers. By demanding an actual licence, rather than relying on the customer’s own information, iGO4 can verify details with unique accuracy.
Scanning technology and the internet have helped to create good conditions for iGO4’s model, but it remains resource-intense, according to Steytler. “That’s why other insurers don’t do it, but once we get scanned documents into our system, it makes it easier for us and for our customers. For example, we don’t have to ring people’s former insurers, which is a lengthy process.”
For some customers, getting found out can be a painful business. Getting found out after they have made a claim can be catastrophic. Their policy might be invalided and cancelled. They might also be refused any car insurance in future. In other words, with its super tough approach and superior technology, iGO4 is protecting its customers as well as saving them money.