Modives and Connexion Mobility have joined forces to launch advanced identity and insurance verification solutions within the automotive sector.

The partnership, initially focusing on courtesy transportation, aims to revolutionise risk management for Connexion’s extensive network of dealership clients.

It will also address key challenges related to loss management while adapting to evolving regulatory demands.

Outdated verification processes contribute to a $7.9bn loss in the US auto industry in 2023 due to synthetic fraud, said Point Predictive.

In addition to financial losses, antiquated verification systems also lead to vehicle downtime, repair costs, business interruptions, and significant liability risks, all of which are difficult to quantify.

The issue has been further exacerbated by recent amendments to the Federal Trade Commission’s safeguards rule. It brought stricter compliance requirements for auto dealerships, original equipment manufacturers (OEMs), and lenders.

Failure to comply with these regulations, which include safeguarding sensitive customer data such as insurance details, could result in fines of up to $51,744 per violation.

Non-compliance also introduces the risk of legal fees and costly settlements.

In response, Modives has developed its patent-pending CheckMy Driver and CheckMy ID applications to meet these compliance requirements.

These solutions protect customer data while reducing dealership liability and improving operational efficiency.

Connexion Mobility CEO Aaryn Nania said: “By turning routine transactions into strategic opportunities, we are not only enhancing customer experiences and protecting OEMs and dealers’ businesses, but also helping our dealers uncover new revenue potential.”

Besides, the partnership will integrate Modives’ CheckMy Driver and CheckMy ID seamlessly into Connexion’s fleet and rental management platform.

This will enable dealers to enhance their operational workflows, ensure compliance, and unlock new revenue opportunities.

Modives CEO Fred Waite said: “By integrating CheckMy Driver and CheckMy ID into their dealers’ workflows, Connexion not only empowers dealers to mitigate risks but also leverages the resulting unique customer data for revenue-generating activity.”

By introducing an “Express Check-in” feature, the integration is set to boost dealership Customer Satisfaction Index (CSI) scores and creates opportunities for upselling.

Insurance and identity data will help dealerships to pinpoint optimal sales moments for vehicle upgrades, new car purchases, and ancillary products such as warranties and vehicle service contracts (VSCs).