Facial Recognition in the Insurance Industry
A new system based on deep learning AI could significantly reduce claims fraud for insurance companies.
The getmeins USA Focus predicts that detecting just 1% of fraudulent claims would save companies in the leading 10 insurance nations $35 billion collectively. This has made the quest for a solution of paramount importance to insurers.
Sophisticated AI driven by deep learning could be their saviour. Huge strides have been made recently in terms of image and facial recognition. This new technology understands every multi-layered element within images and videos in the same way humans do. This allows it to analyse and recognise images and faces in video content with up to 98% accuracy — and 1,000 times faster than the human brain.
FaceApp started as a celebrity-fueled trend is quickly becoming another focal point in the ongoing conversation about privacy in the digital era. Even those living under a rock are struggling to escape the FaceApp craze. The mobile photo-editing app that uses AI-driven biometric tech to render realistic transformations of faces has been downloaded by more than 100 million people on the Google Store alone and ranks #1 with Apple users. A few days after we all started using the app to post digitally-aged selfies, the privacy concerns emerged.
The integration of biometric tech into our mobile devices (among other facets of our daily lives) is nothing “new,” at least in technological terms. The facial recognition software that powers FaceApp is also used to unlock our mobile devices, aid law enforcement, and is being tested by the service and retail industry for enhanced consumer experience. We can include the insurance industry into the growing list of those getting in on the action.
In 2017 an insurance company rolled out a software platform that makes use of facial recognition and biometrics for several insurance-related purposes.
The platform is designed to not only boost security and prevent fraud, but can reportedly determine the longevity, health, and overall risk of a policy applicant. By scanning the image of an applicant’s face, the software creates a profile based on biological, physical, genetic, and behavioral information. This data is intended to give insurance carriers a comprehensive assessment of the applicant’s life expectancy and mortality risk. For the consumer, this can streamline the application process by foregoing a trip to the doctor, and instead use a selfie and questionnaire.
That said, the selfie quote is becoming a reality for insurers. The simplicity and affordability are undoubtedly a selling point for younger consumers, who tend to jump headfirst into emerging tech, and favor apps over websites. However, the privacy concerns surrounding facial recognition software could be another life insurance objection for agents to overcome, especially when dealing with baby boomers and at least a portion of Gen-Xers. Millennials, stereotypically known for taking and posting selfies for just about any occasion, are much more likely to snap another for a life insurance quote.
It’s important for agents and advisors to think about the pros and cons of selfie-quoting technology. The chances are high that we’re only a few years away at most from this becoming commonplace, so it might benefit you to get a little insight before that happens. Next time you’re sitting with a client, find a way to work the topic into your conversation. Getting a sense of how your target market feels about the technology will help you prepare for the day it joins your current list of products and services.
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