Until the introduction of the PXL Vision solution in 2020, the required identification of customers when concluding an insurance contract was largely analogous. In order to meet their due diligence obligations with regard to Swiss laws on the prevention of money laundering and terrorist financing, the advisors had to scan the applicant's ID at a photocopier, print out the copy of the ID together with all documents, stamp it and sign it.
"This process was very error-prone. The copies were often poor. Expired ID cards were not recognized and there were data protection problems when photos of customer ID cards remained stored on the advisors' cell phones. That's why our compliance department was pushing for a reform," says Fabian Baldinger, Business Analyst and Project Manager Private Clients at Swiss Life, describing the challenges that prompted the Group to look for a digital and largely automated process.
"It was crucial for us that we didn't go to a provider whose solution we, as a first mover, would first have to work out the teething troubles with," emphasises Baldinger. Four companies took part in a tender, from which PXL Vision, the Swiss market leader for secure, fully automated identity verification based on artificial intelligence, emerged as the winner.
For Swiss Life, it is crucial that the personal data on the application matches that of the applicant. "Depending on the product and contractual partner, the correct recording of the date of birth, gender and nationality is particularly important for life insurance policies, as the calculation of the policy is based on this," explains Baldinger. It should also be noted that Swiss regulation stipulates that insurers' employees must have seen the original identity document for the purpose of customer identification. Depending on the product and the status of the insured person, this is legally required for a large number of applications.
PXL Vision worked with Swiss Life to develop a process that takes all the necessary requirements into account. At the heart of the process is the "ID Easy" smartphone app, which runs smoothly on both Android and iOS.
The insurance or investment application now contains a QR code, which the employee reads using the smartphone camera after starting the app. This is how the application is matched to the correct application. The QR code is also displayed in the corresponding application system, allowing the advisor to scan the QR code from the screen. All persons who need to be identified when concluding the contract - including authorized representatives or legal representatives - are now displayed in the app. The advisor is guided intuitively through the process. To scan Swiss or European ID cards, passports, foreigner ID cards in credit card format or Swiss driving licenses, the camera automatically switches to landscape format and the document data is read out. If the document also contains a reverse side, this must also be captured.
In the next step, the smartphone app checks the data and compares it with the data on the application. The app displays any discrepancies with a note. If there are any differences, the process can be repeated or the data can be sent to Swiss Life for further verification with the differences, e.g. due to special characters in the name. Once the data has been successfully transmitted to the head office, all data is automatically deleted from the phone. No further authenticated copies need to be submitted. Paper ID cards for foreigners can also be recorded via the mobile app and sent for further processing.
The new solution from PXL Vision has been in use since November 2020. Since then, thousands of applications have been processed using the app. For Baldinger, the advantages are obvious: "It not only greatly simplifies the identity verification process. We have also significantly increased the quality. That was exactly our goal." In addition, advisors gain back valuable time for customer meetings. The use of PXL Vision also makes things easier for consumers. As the data is now recorded consistently and centrally, it may not be necessary to re-identify for further applications.
"In technical terms, Swiss Life opted for our white label solution, which integrates all identity verification modules into a specially developed user environment for web and mobile services," says Karim Nemr, Chief Business Officer at PXL Vision. Baldinger is particularly pleased that "PXL Vision was a convincing solution with an excellent scope of services at a reasonable price, which immediately convinced our management." The PXL Vision solution was quickly integrated into the SAP system landscape at Swiss Life.
Based on the positive experience, Swiss Life intends to expand its collaboration with PXL Vision.