Motor insurance providers are witnessing a rapid expansion in the choice of vehicle history and driver centric data available to assess risk at pricing and claim. From accurate valuations, to ownership history, to data on in-built safety technology for a specific vehicle, to quote, NCD and cancellation history for the proposer. The challenge has been in bringing these increasingly granular and predictive datapoints together to build a swift, accurate picture of the total risk – all factors considered. That problem is about to be solved, however as all the pieces of the jigsaw – vehicle information, proprietary Advanced Driver Assistance Systems (ADAS) data and individuals policy history data becomes available through one data platform for the first time.
Establishing the whole story of a vehicle and its owner has now become even more important, with consumer expectations rising, new regulatory pressures, fraud an ever-present threat, claims inflation rocketing and social and technological changes altering the UK car parc. As the Financial Conduct Authority makes it clear it will not tolerate undervaluing of vehicles in claims[i], providers are feeling mounting pressure to get it right, every step of the way – from pricing to claim.
It is easy to see how challenging this has been for the market. On the one hand there are rapid advances in vehicle safety technology appearing in more cars and while some ADAS fitments are deployed across all models, others are chosen add-ons unique to a vehicle. At the other end of the scale research suggests that owners are cutting back on MOTs and servicing of their vehicles as the cost-of-living crunch continues[ii]. With differences in car technology and maintenance across the board, each car can be as unique as its driver.
Now though, LexisNexis® Vehicle Insights is set to offer a suite of data solutions including vehicle specification and status, mileage, MOT history, vehicle valuations and vehicle listings. When used alongside LexisNexis® Vehicle Build offering data on the presence and performance of ADAS fitments at the level of Vehicle Identification Number (VIN), the picture of vehicle risk is instant and in full focus.
The rest of the jigsaw comprises details on the driver using proprietary and public data sources to swiftly confirm their identity, that they are not linked to fraud, their insurance history including their No Claims Discount Entitlement, their claims history and possible flags for quote manipulation.
Unifying vehicle data via Vehicle Insights and driver data sources through a single platform can speed up quote and claims processes for the customer and help manage risk during the lifetime of a policy. UK motor insurance providers are already testing this new solution and the results are strong. In essence we are building a one stop shop for motor insurance risk assessment that goes further and deeper than any other solution, so that insurance providers have the best chance of doing the right thing for their customers, from producing a quote truly reflective of the risk to delivering a claims experience that could make the customer stay rather than go at renewal.
[i] https://www.fca.org.uk/news/press-releases/insurance-providers-warned-not-undervalue-cars-or-other-insured-items-when-settling-claims
[ii] https://www.halfordscompany.com/news-and-media/press-releases/motoring-news/four-in-ten-motorists-not-able-or-concerned-about-affording-their-next-mot-with-45-saying-they-will-break-the-law-and-drive-their-car-without-one-and-17-already-have/
by Tom Lawrie-Fussey, Automotive Director, LexisNexis Risk Solutions, Insurance, U.K. & Ireland
