Data analytics firm Lexis Nexis have developed a new predictor of motor claims loss.
The system, called Policy Insights, extracts, hosts and processes large quantities of data to deliver information to the UK’s Insurance industry.
The platform allows motor insurers and brokers to more accurately assess risk at the point of quote through the use of a customers policy history data.
Available through Lexis Nexis’s Informed Quotes and Informed Broker platforms, the service provides brokers and insurers with a broader view of the risk, allowing them to align their quoting activities with the underwriting appetite of their insurance partners.
The platform links data providers and software houses or broking platforms helping to deliver data in real-time into the quoting process of an insurance transaction, often through price comparison websites.
Selim Cavanagh, vice president, insurance at Lexis Nexis Risk Solutions, told Post: “Insurers have been utilising data sets for years. Policy Insights will give brokers access to these new attributes injected directly into the quote process for faster and more informed decisions.
“It’s a real marrying of leading edge data and leading edge technology to benefit the insurance market, enabling insurers and brokers to grow their customer relationships, and optimise their customer experience.”
Cavanagh added: “We have five years of policy data then we know what we have found is that people with a gap in cover in the past year had up to 50% higher loss cost than those that didn’t and people with any gap in the last five years have a 30% higher loss cost.
“We have also found that those who switch early have a 60% higher loss cost. This is a significant increase. Insurer have suspected this and seen it within their own books when they have had access to the data. They have never been able to quantify data like this and they can only do so effectively when they have access to a contributory data set.”
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