LexisNexis Risk Solutions has found that:
People with a gap in cover in the past year had up to a 50% higher loss cost than those that didn’t
People with a gap in the last five years had up to a 30% higher loss cost
People with a policy cancelled prematurely had up to a 33% increase to loss cost, and people with two or more policy cancellations had up to a 70% increase to loss cost
The insurance sector is now able to harness the power of this knowledge based on their current customers and prospects’ motor insurance history, with the launch of Policy Insights from LexisNexis Risk Solutions. Policy Insights gives insurers a number of new policy attributes that offer a deeper picture of risk, going above and beyond traditional insurer risk predictions. It will show the number of mid-term cancellations, all active policies held and average policy length, plus it can highlight gaps in cover across all the vehicles they have owned, also helping to indicate potentially fraudulent policy applications at point of quote.
Selim Cavanagh, Vice President, UK Insurance at LexisNexis Risk Solutions, said: “When we established the correlation between policy history and loss, we knew immediately the massive potential this offered the insurance sector to improve pricing accuracy in this highly competitive market place and deliver operational savings by reducing cancellation costs from avoiding high risk cases & lower claims and lower associated claims handling costs.
“Policy Insights really demonstrates the power of contributory databases when combined with analytical expertise to deliver real, actionable insights to insurance providers. The policy history information provided by Policy Insights will help motor insurers verify information provided by customers and prospects quickly, price more accurately and segment more effectively. They will also be able to deliver a fairer price to customers based on a much clearer understanding of their risk.
“The timing could not be better for the launch of this new service given the multiple and challenging market conditions currently facing the motor insurance sector.”
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