At Identity Week 2025 in Washington, D.C., the conversation on fraud and identity made one fact clear: fraud is inevitable. What matters is how the industry responds. Losses do not need to remain unpredictable, draining resources for institutions and reducing public trust in the financial system.
For policy makers, this is not a niche industry problem. Identity fraud is a systemic risk. It weakens consumer confidence, burdens smaller institutions disproportionately and drives costs that ripple through the broader economy. The time has come to consider identity fraud insurance as a structural safeguard, just as deposit insurance once became a foundation for trust in banking.
Making Fraud Insurable
Until Instnt, identity fraud was not insurable. Instnt’s approach combines AI-powered risk assessment, insurance-backed loss transfer, and portable identity into one integrated approach. Backed by A-rated insurers, this model allows institutions to move fraud losses off their balance sheets and turn unpredictability into predictable outcomes that support growth.
At Instnt’s seminar and roundtable, practical questions were addressed: which metrics prove value, how fast a pilot can launch, and how existing data can streamline claims. These are not theoretical debates but practical steps that show identity fraud can be made measurable, predictable and insurable. For policy makers, this demonstrates that a new tool is available. Fraud no longer has to be absorbed as an unavoidable cost. It can be measured, transferred and managed, improving institutional resilience and protecting consumers from the ripple effects of financial instability.
MultiPass: A Transferable Digital Wallet
Alongside identity fraud insurance, Multipass, was launched. A portable insured digital identity credential. With Multipass individuals can securly carry their verified identity across institutions, reducing repetitive verification processes, increasing approval chances, and maintaining protection. Together, insurance and Multipass balance security with a seamless customer experience.
For policy makers, MultiPass demonstrates how public–private collaboration can reduce friction in identity verification, strengthen trust in digital transactions, and extend protection to both institutions and consumers.
Looking Ahead
Identity Week confirmed that the industry is ready to think differently about fraud. Moving forward identity fraud insurance needs to be treated as a part of the finanical systems saftey net. By embedding protection into the structure of financial systems, fraud can shift from an unpredictable risk to a managed outcome. Continuing the dialogue with financial institutions and policy makers alike will ensure identity fraud is not only prevented but insured against, creating greater certainty for the future.
