LONDON, July 17, 2020
LONDON, July 17, 2020 /PRNewswire/ -- Behavioural science specialists, Dectech, have run research that demonstrates that insurers could make small changes to their application and claim processes that help prevent opportunistic fraud, in turn saving themselves millions of pounds every year.
In research for the Insurance Fraud Bureau (IFB), detailed in the Applied Marketing Analytics journal (https://www.ingentaconnect.com/content/hsp/ama/2020/00000005/00000004/art00002;jsessionid=3frs0j9nuhts9.x-ic-live-01), Dectech explore how consumers can be nudged to provide honest answers when making insurance applications and claims. Using their Behaviourlab research tool, Dectech, deployed psychological nudges to prevent over 30% of false information submitted in applications and claims.
Dr Benny Cheung, Director at Dectech, commented:
"Our research has shown that we can nudge consumers to make honest choices. This means that for companies where customer honesty really affects profits, such as the insurance sector, deploying Dectech's nudge approach is a commercial must."
Mark Allen, Fraud and Financial Crime Manager at the ABI, commented:
"These findings are exciting and a real step forward in tackling opportunistic fraud. We urge insurers to implement and benefit from these insights now."
Ben Fletcher, Chief Customer Officer at the Motor Insurers' Bureau (MIB) and Executive Director at the IFB, commented:
"This research is truly ground-breaking - I have no doubt that applying the findings from this research will prove a game-changer for the industry, benefiting insurers and customers alike."
Notes for editors
Dectech's Behaviourlab replicates the real-world decision environment faced by customers and provides forecasts that are extraordinarily accurate. It can be tailored to answer questions that are impossible to live trial, such as extreme changes to products and services, and competitor offerings.
Using this research approach, Dectech tested several solutions for the IFB and were able to show how insurance fraud can be reduced by customisable psychological nudges to increase honesty.
More information can be found here: https://www.dectech.co.uk/insurance-fraud-prevention/
Decision Technology (Dectech) is a behavioural science research consultancy that specialises in helping businesses understand and manage customer decision-making, from acquisition through to retention and all the points in-between. We provide the most accurate and best value forecasts available on how people will behave in new situations. Dectech is a member of the Management Consultancies Association and the Market Research Society.