Digilog LA (Latin America), which started operations in 2008, was originally tasked to devise a process capable of identifying and weeding-out both fake applications and tenants alike. Following a six month trial, of the 1,500 cases evaluated using AVS (Advanced Validation Solution), there was only 1 case considered bad against the regular rate of 300, a staggering drop from the usual 20% claim rate to only 0.066%.
Following these staggering results, the company attracted the attention of the financial and insurance industries, always keen to trial new and innovative validation tools assisting them in the global fight against fraud. Other insurance companies and banks implemented and deployed AVS (incorporating AVS: RiskMaster „), in their validation processes for underwriting, pre-employment screening, credit applications and claims screening.
The Solution demonstrated consistency and reliability in accurate risk assessment, enabling the banks and insurance companies proceed directly to settle the low risk claims or applications. This resulted in a significant reduction in processing time, without the need for delay or request for additional documentation. Feedback showed that AVS is now being accepted as a mainstream solution that really does deliver hugely important benefits when applied correctly. We are constantly adapting AVS to address the dynamic challenges that fraud presents and helping organisations to become far more cost efficient and profitable.
One remarkable success case is the performance of a Colombian Insurance Company who decided to screen 100% of the policy applications, using AVS. Results before implementation of AVS included ROI of 36% (the average of the industry for these lines of insurance). 3 years after deploying AVS, the ROI for this company skyrocketed to 81%. They have further plans to expand their use which they believe will enable them to further reduce their underwriting time to 2 hours (from first contact to confirming their decision of acceptance or refusal of the proposed insurance policy). This compares with 2 to 3 working days to their competitors.
Currently, Digilog LA, with the continuous support and encouragement from its business partner, Digilog UK, provides risk validations solutions for several insurance companies and financial institutions in Latin America.