Identity theft is one of the fastest growing crimes in the United States, according to the Social Security Administration. With the increasing number of computers being hacked and personal information pilfered, criminals are exploiting the data for malicious purposes like never before. This trend is a serious threat to the life insurance industry, as perpetrators often use this data to obtain fraudulent policies and collect death benefits – leading to billions in losses and increasing the cost of insurance to legitimate policy holders.

This case study, using real data from one of our members, demonstrates how data provided through the MIB Total Line Service Alerts can reveal behavior patterns that clue underwriters into the presence of potentially adverse behaviors – in this case possible identity theft.

Revealing potential adverse behavior
The Total Line Alert shows a 50-year-old female who has applied to three separate companies, in a short duration, for $250K in TERM coverage each. On initial glance, this may appear to be an attempt at stacking coverage, but the terminated policy section reveals deeper concerns. This ‘applicant’ had a policy which resulted in a death claim in 2020!
If the applicant is deceased, how are they applying for three new policies?
Could this be a case of Identity theft?

Below is a copy of the full Total Line Alert for this case study (You can also view an expandable version of this Total Line Alert).

This is a real MIB member – could this data be from your company?
As accelerated underwriting programs evolve and Direct-to-Consumer distribution grows, it becomes crucial to have systematic flags identifying potential areas of concern for underwriting. The Alerts generated through the MIB Total Line Service, soon to be accompanied by codes that support automated underwriting, will help signal the necessity for extra due diligence in identity verification and in researching potentially adverse behavior patterns during the underwriting process*.

*Note: the total line alert data can also be delivered post issue in a quarterly report, to support post-issue audits, claims, and internal risk analysis.

The MIB Total Line Service

Designed to empower underwriters, the MIB Total Line Service enables the verification of existing policy coverage, supports financial justification for the total line, and offers insights into potentially fraudulent behaviors such as stacking, churning, and lapse risks - as well as identity fraud. Alerts, delivered at the time of underwriting, support the ability for appropriate action to be taken before a policy is approved while quarterly retrospective reports support post-issue activities such as claims, audits and internal risk analysis.

The alerts and reports provide our subscribers with a unique layer of fraud and financial protection. Learn more about how you can empower your organization with total coverage exposure data with the MIB Total Line Service by visiting: https://www.mibgroup.com/solutions/total-line-service.