Solving The Profitability Puzzle - Addressing Auto Insurance Quote Manipulation
To address the issue of quote manipulation, the fundamental strategy for carriers revolves around rigorous verification processes.
Insurers should understand the importance of proactive measures by carriers, especially in agent-driven channels, to combat quote manipulation.
Quote manipulation refers to the deliberate provision of inaccurate information by either the insurance agent or the consumer during the quotation process to secure a more favorable insurance rate.
A specific study highlighted the practice of quoting multiple individuals from the same household on the same day to find a more favorable rate, based on who is designated as the primary insured.
The agent component of quote manipulation involves insurance agents using their knowledge of the insurance system to alter information and secure lower premiums for clients.
