Identity Theft Insurance: Missing Link In Customer Loyalty For Insurers?
For many of the things—homes, cars, boats and other possessions—today’s consumers value most, there’s an insurance policy. But, what about for their identities?
Identity theft is a costly crime that occurs every three seconds1, and 67 percent of U.S. adults are worried about it happening to them.2 The threat of fraud, whether it originates in a bogus email or from a massive date breach, and the financial loss that accompanies it are real. Thus the need for security becomes a desire for identity protection. And, with consumers already looking to insurers to protect their other assets, why shouldn’t they do the same for their identities?
Identity protection isn’t an insurance policy, but it does have an insurance component. With its focus on monitoring for and resolving identity theft, identity protection delivers peace of mind much like a insurance policy does
In addition to insurance, an identity protection product typically has three other primary components:
By reviewing credit reports, address change databases and certain Internet destinations for new activity or data exposure, the product helps consumers identify signs of fraud they may otherwise miss.
An alert via email or text message notifies consumers when the monitoring has detected something new, such as a collections account, fraudulent loan or changes to an existing account. These alerts instruct them on what action to take if they suspect fraud.
- Fraud Resolution
If consumers do encounter fraud, they have a team of highly trained resolution experts to guide them through the steps needed for recovery. Needless to say, a professional who focuses solely on fraud resolution is much quicker and more efficient at it than the typical consumer.
Plus, there’s the insurance, such as a $1 million policy with a $0 deductible, to cover certain resolution costs, possibly including:
- Legal fees
- Private investigator bills
- Fraudulent electronic fund transfers
- Lost wages
Identity protection with insurance feels natural to consumers coming from their insurers. The product expands their peace of mind and allows them to safeguard a wider range of assets. All while aligning your brand even more closely with their needs and building loyalty every time they interact with the product.
Adding identity protection to your product line addresses a pertinent concern in your customers’ lives. Could it be the missing link in your customer loyalty?
To learn more, download the free “Customer Loyalty in the Insurance Sphere: Increase Touch Points, Increase Engagement,” white paper.
1 Based on figures from the 2013 Identity Fraud Survey Report, Javelin Strategy & Research, February 2013
2 Harris Interactive Study, October 2013
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