Background screening is an essential thing for many industries nowadays. From banking to insurance, companies belonging to different business sectors rely on fingerprints and biometrics to verify employee and client identities. In the present scenario, the insurance industry has undergone various security updates. Fingerprints for biometrics play a key role in maintaining and enhancing the overall security standards. So, why is background screening for the insurance industry so crucial? Find the answer to this question in the following section of this article.
1. Identity Verification
According to a report, total insurance fraud claims are estimated to be $308.6 billion every year in the USA. In such a scenario, insurance companies have drastically changed their policies to prevent fraud claims to cover their losses. Among various measures, the companies have introduced biometric checks for the customers or clients to ensure no fraudulent activities take place.
Besides verifying the client’s identity and maintaining seamless data records, insurance companies have also prioritized background checks for employees. Many emerging insurance companies have been hiring employees quite aggressively of late. For background screening for the insurance industry, the companies rely on employee biometrics data.
2. Checking Government Licenses
The insurance companies have to deal with the verification of various licenses. For example, vehicle insurance companies verify the licenses of their clients before providing the insurance services. Verifying the government-issued licenses was a time-consuming thing in the past. But, things have changed drastically now due to the introduction of live scan fingerprinting.
Live fingerprint scanning accelerates the licensing procedure. At the same time, it helps the insurance companies identify the authenticity of the documents with precision. Fingerprint or other biometric verification easily helps them to verify the document’s authenticity. Nevertheless, it is also easy to access document information online using such verification methods.
3. Credit History Checking
Background screening is essential to check the credit history of an insurance applicant. Credit history and insurance services are correlated. A person with a high credit score can find insurance policies available at low premium rates.
Credit history checking is also important to understand the person’s financial ability to continue paying the insurance premiums in the long term. Depending on the credit record of a person, the insurance companies adjust the premium rates and other facilities.
4. Motor Vehicle Record Verification
Motor vehicle record verification is crucial, especially when it comes to dealing with motor vehicle insurance claims. The car insurance companies closely monitor the motor vehicle records of the insurer before offering the insurance policies. A person with a clean motor vehicle background will get many facilities and offers with ease.
5. Checking Criminal Records
Background screening for the insurance industry is also crucial to check a person’s involvement in criminal cases. A person involved in fraudulent cases in the past is a red flag for the insurance companies. Similarly, Checking the criminal records is essential before offering a particular policy to a person.
Bottom Line
The use of background verification is a crucial step that insurance companies need to perform to ensure a secured transaction or agreement with the clients. In the background verification process, biometric details play an integral role to ensure that background verification turns out accurate. Insurance and backing companies looking for a fingerprint service for background verification can contact Texas Fingerprints & Notary, a reliable fingerprinting service near you in Texas.
