LexisNexis and TransUnion Partner on Insurance Affordability

The ability to assess insurance customers’ ability to pay premiums has become a critical issue for insurers as household finances face continued pressure from inflation and rising living costs.

Premium financing – the practice of spreading insurance payments across monthly instalments rather than annual lump sums – has moved from being a convenience to a necessity for many consumers. However, insurers must balance accessibility with prudent risk management and regulatory requirements around responsible lending.

Against this backdrop, insurance data provider LexisNexis Risk Solutions has expanded its partnership with TransUnion to help UK insurers assess customer affordability for premium payments amid rising economic pressures on British households.

The agreement will see TransUnion’s Affordability Report integrated into LexisNexis's quote platform. TransUnion, which provides credit reporting and analytics services, will deliver real-time affordability assessments to help insurers determine appropriate premium payment options and interest rates for customers at the point of sale.

Digital integration

The integration occurs through LexisNexis’s Informed Quotes platform, which processes hundreds of millions of UK insurance transactions daily. The system currently delivers TransUnion data to 20 UK insurance providers, including three major insurers.

The partnership builds on an existing relationship that began in 2022, when LexisNexis started offering TransUnion’s TrueVision credit assessment tool through its quote platform. TrueVision provides insurers with credit-based risk scores to evaluate potential customers.

The technology integration enables insurers to access comprehensive financial data on consumers during the quotation process. This includes information about income levels and existing financial commitments, which helps determine suitable payment structures for insurance premiums.

Cost of living response

The expanded partnership comes as UK households face increasing financial pressure. TransUnion data indicates 46% of households report their income struggles to match inflation rates.

Louise Johnson, director of product management for insurance in UK and Ireland at LexisNexis Risk Solutions, says: “Expanding our relationship with TransUnion will help the insurance industry provide consumers the cover they need with the premium paid in a way they can afford, by offering crucial insight over premium affordability data.”

The combined service aims to support insurers in making rapid decisions about premium finance options while managing their portfolio risk. This includes assessing whether customers can sustain monthly premium payments and determining appropriate interest rates for instalment plans.

Consumer protection

The partnership addresses recent industry initiatives on premium finance. The Association of British Insurers has introduced Premium Finance Principles, while the British Insurance Brokers’ Association has published guidance for brokers on premium finance.

The integration enables insurers to meet Financial Conduct Authority Consumer Duty obligations, which require firms to deliver good outcomes for retail customers. These regulations mandate that financial services providers ensure their products are affordable for consumers.

LexisNexis Risk Solutions, a subsidiary of RELX Group, processes this data through its Informed Quotes platform. The system integrates with insurers’ existing quotation systems to provide real-time decisions during customer interactions.

Market impact

The partnership affects both personal and commercial insurance lines. Insurers can use the integrated data to develop more flexible payment options for customers while maintaining appropriate risk assessment standards.

TransUnion’s affordability assessments include analysis of income, existing credit commitments, and spending patterns. This data helps insurers determine whether customers can maintain premium payments throughout the policy term.

The service extension comes as the insurance industry faces pressure to improve access to coverage while maintaining profitability. Premium finance has become increasingly important as consumers seek ways to spread insurance costs.

Kelli Fielding, chief product officer at TransUnion in the UK, says: “There is an ongoing squeeze on consumer finances, and almost half (46%) of households indicate their income is currently struggling to keep up with inflation. So, it’s essential for insurance providers to better understand their customers' financial situations.”

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