Enhanced risk assessment
Fraudscreen’s cipher:risk solution is designed to assist businesses in effectively managing the level of financial risk to the business from acquiring new customers. cipher:risk will segment these prospects according to the likelihood of long term profitable relationships. It can be applied as a stand-alone solution or incorporated into existing scorecards with the following key benefits:
Credit risk: Whereas traditional credit scoring assesses historic payments to determine current payment ability (can pay/can't pay), Fraudscreen provides an additional layer of complimentary insight - future payment intent (will pay/won't pay). Typically, very high or low credit scores provide enough justification to decline or accept an application. But where the score is marginal, or where there is insufficient data, then using cipher:risk can identify a 'swap-set' opportunity, turning a potentially unprofitable decision into a profitable one.
Insurance risk: Opportunistic fraud is costing the insurance sector a staggering £1.6bn per annum and the issue continues to worsen. With loss ratios under increasing pressure, the importance of appropriate pricing levels on premiums becomes essential in managing and reducing the businesses exposure to risk. cipher:risk will predict a person's likelihood to make more frequent and over-inflated claims and can easily be integrated, at postcode or postal sectors levels, into existing pricing models.