The Insurance Knowledge Gap: Solving Insurance Verification

These days, insurance isn’t just a safety net - it’s a financial (and often legal) necessity. From renting an apartment to buying a car, many major life events require consumers to buy insurance. However, it turns out that many people don’t understand what they’re paying for.

A recent survey reveals that most Americans don't fully understand their insurance coverage, despite 86% believing they do. This isn't just a surprising statistic— it's a significant problem that has major implications for any industry that relies on insurance for their customers.

The Impact of Insurance Illiteracy

The fact that the majority of Americans don’t understand their insurance shouldn’t be shocking. Insurance is complicated, often with conditions and exceptions for specific circumstances. The average auto insurance policy is basically a 20-30 page legal document, and even the summary on the declaration page isn’t much simpler.

But where this becomes a real problem is when you turn the issue on those who are handling insurance information on a regular basis - think F&I managers or leasing team staff. While these employees may undergo onboarding training, it’s often not enough to prepare them for the edge cases and exceptions they may encounter when reviewing customers’ insurance.

In turn, they’re left with similar misunderstandings to the general public. At best, this lack of knowledge can lead to efficiency drops and dips in customer satisfaction scores. At worst, it can incur major costs due to staff errors.

Prioritizing Expertise in Insurance Verification

When it comes to insurance, I’ve found that many businesses discount the importance of tribal knowledge. Even when performing a basic task like calling an insurance carrier to retrieve policy information, you need to know the right questions to ask in order to get what you need.

In the same way, it’s pretty easy to review a simple declaration page to collect key information. However, there are hundreds of different insurance carriers with hundreds of different formats, and learning how to navigate them all is a major undertaking.

Because of the lack of a universal standard across the insurance industry, even agents who complete weeks of training and testing will typically only become knowledgeable about a few key products. Between hundreds of insurance companies, each with its own documents and offerings, there’s no way for a human to quickly be able to handle this level of analysis and determination quickly and without error.

That’s why I believe that improving insurance verification isn’t just an issue of speeding up data retrieval. Rather, it’s an insurance problem that needs to be solved with robust industry expertise from beginning to end.

How We’re Bridging the Gap

At Modives, we handle verification so you don't have to, navigating through hundreds of variants of declaration pages and ID cards and comprehending limits and deductibles.

Many insurance verification solutions focus on the data fetching process, reducing friction to retrieve information from the source. Our solutions CheckMy Driver and CheckMy Resident take it even further, providing end-to-end verification for the auto and property industries. After pulling the customer’s insurance data directly from the carrier, our AI-powered engine instantly reviews it against your requirements to confirm active, adequate coverage.

By addressing these gaps in knowledge with real-time, accurate insurance verification, Modives helps ensure that businesses and consumers alike are protected and informed, reducing risks and enhancing confidence in insurance coverage.

Want to learn more about how our solutions can add insurance intelligence to your business processes? Shoot me a message, or reach out to my team to chat.