Multi-biometric technology is gaining importance in the insurance industry, and with good reason. Not only does it provide a more secure way to identify customers, but it also offers significant economic benefits.
In Latin America, where financial inclusion remains a challenge, the adoption of multi-biometric technology is especially important. By reducing waiting times and simplifying processes, the accessibility of financial services can be increased for more vulnerable populations.
The World Bank reports that only 51% of adults in the region have a formal bank account, making financial inclusion a critical issue. Multi-biometric technology can help address this problem by allowing potential customers to identify themselves easily and securely.
In addition, multi-biometric systems can help insurance providers reduce costs associated with fraud. According to an Accenture report, fraud in the insurance sector in Latin America represents between 10% and 15% of total costs. Accurate and secure identification of customers can help reduce these costs and protect insurance providers' revenues.
The operational efficiency of insurance companies can also be significantly improved with multi-biometric technology, as it reduces the time and costs associated with manual identity verification and document management. A Frost & Sullivan study found that the use of biometrics could save insurance companies more than $1 billion in annual operating costs around the world.
In Mexico, some of the main insurance companies, such as Prudential, carry out their policy application and contracting processes remotely with biometric and government validations. Furthermore, according to a Markets and Markets report, the biometric technology market in North America and Latin America is expected to experience growth at a CAGR of 22.5% through 2025.
In the United States, biometric technology is also gaining ground in the insurance sector. According to a report by TechNavio, the biometric technology market in the US insurance sector is expected to be. U.S. growth at a compound annual rate of 16 percent through 2023.
In conclusion, multi-biometric technology is a secure and accurate way to identify customers in the insurance industry, which can help reduce costs, combat fraud and improve financial inclusion. As more companies adopt this technology, we are likely to see an increase in efficiency and profitability in the insurance industry.