Total View of U.K. Insurance Claims History Now in Sight as LexisNexis Risk Solutions Launches LexisNexis® Precision Claims.
In a first for the U.K. general insurance market, insurance providers will soon be on a path to be able to view all the past claims for an individual across home and motor as LexisNexis® Precision Claims, a cutting-edge market-wide contributory claims database, starts accepting data from the insurance market.
LexisNexis Precision Claims has been created to support risk assessment at all points of the customer journey. It will enable insurance providers to access highly granular claims data gathered from across the market, through one platform, to help provide a true understanding of the insurance sector’s claims’ experience with an individual. This will not only help the industry identify undisclosed claims, but LexisNexis Risk Solutions will also be able to better help insurance providers predict claims losses based on an individual’s claims history, knowing that a motor loss can be predictive of a home loss and vice versa.1
Insurance providers will be able to start accessing home and motor claims data for a person, a property and a vehicle including the type of claim, the circumstances and the settlement. This will allow insurance providers to cross-check claims history across motor and home for the first time.
Claims data is already used in this way in the U.S. According to U.S. analysis,2 the application of claims data to assess risk has found:
- 41% of consumers under report previous motor claims;
- People with undisclosed motor claims have a 34% higher average claims cost, compared to people with the same number of disclosed claims;
- 14% of consumers have at least one motor and one home claim indicating a link between both lines of business;
- People with three or more motor claims incur home claims losses that are approximately 40% higher in cost than those without any motor claims.
Carla McDonald, Director of Insurance Claims Product Management, LexisNexis Risk Solutions, U.K. and Ireland, said:
Granular claims data with cross-search functionality has been a big blind spot for the market, potentially leading to less accurate pricing for the consumer and higher loss costs for insurance providers. Lack of a cross-market view may also have impacted the sector’s ability to fully understand the customer’s needs. For example, as we can see from the data gathered from our U.S. business, if you know an individual has had three or more motor claims, then you know the cost of their home claims could be up to 40% higher. Understanding this may mean ancillary services or different products could be offered to the individual to help mitigate or reduce the risk of a home claim in the future.
We are delighted that so many insurance providers are strong supporters, backing this initiative so that they can begin to harness the power of contributory claims data. We look forward to sharing the unique insights with those forward-thinking organisations who have embraced Precision Claims, in the next few months. It is another example of the power of contributory data to the insurance market at all points of the customer journey to help reduce friction, improve pricing decisions, mitigate fraud risks and support claims.
Content provided by LexisNexis Risk Solutions
Read more article from Modern Insurance Magazine here
