Realize a healthy balance between portfolio quantity and quality
Aegon was dealing with fraud and (high) risks in both, its underwriting and claim process. In addition, Aegon was aware that its financial loss due to fraud can be considerable as well as the damage to its (international) reputation. Aegon used to be a traditional insurance company before it started to set up their own digital sales channel (Aegon.nl) and two external online retail channels.
‘’After a fast implementation Aegon is now able to better recognize risks in the underwriting process and is able to improve the identification of fraudulent claims with fraud detection”
Within a short period of time Aegon realised that these channels attract different audiences. Moreover, it was more difficult to maintain a good overview of these ‘anonymous’ channels. The churn-rate was high and Aegon’s portfolios contained a considerable share of defaulters.