LexisNexis Risk Solutions, the technology-driven risk solutions provider, has launched a new cutting-edge, market-wide contributory claims database.
Called Precision Claims, the platform is the first of its kind to serve the general insurance market and will enable insurance providers o view all the past claims for an individual across home and motor as Precision Claims starts accepting data from the insurance market.
LexisNexis takes a new approach to risk assessment
According to reports, LexisNexis Precision Claims was developed to support risk assessment at all points of the customer journey. The platform helps insurance providers 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.
The solution 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.
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.
A new claims assessment system for European insurers
Systems similar to LexisNexis Precision Claims are already operational in the US marketplace. According to US analysis, 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
Speaking about the new technology platform and service, Carla McDonald, director of insurance claims product management, LexisNexis Risk Solutions, U.K. and Ireland, explained, “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. The 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 US 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.”
She continued, “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.”
McDonald added, “ 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.”