Data infrastructure in the form of contributory databases has been the driving force delivering new data insights, powering insurance innovation for a variety of markets since the 1980’s. As experts in developing contributory databases – with 14 built in 25 years – we are now generating new opportunities through innovation in the UK with the LexisNexis Policy History Motor database.
Recently, we have centred on this logical next stage in data enrichment, by taking the learnings and output from discussions with the market in order to evolve the NCD Module, giving greater insights into an individual’s policy history, allowing our contributors to price premiums more accurately and improve their customers experience.
The next stage of our growth is now with Policy Insights. Meanwhile our testing cycle is showing even greater predictability of risk outcomes, as the policy data available within the database grows from 131 million historical policy updates in Q2 2015 to over 268 million estimated by Q1 2017. We’re inviting more insurers to test the value, see the benefits.
Insurer results on the implementation of new Policy Insights data attributes
To show the power of contributory data, here a few key findings from tests conducted with a number of motor insurers.
These show the loss cost correlation for people who have had gaps in insurance and cancelled policies in the last five years.
- People with a gap in cover in the past year had a ~50% higher loss cost that those that don’t. People with a gap in the last five years had a ~30% higher loss cost.
- People with a policy cancelled prematurely had a ~33% increase to loss cost, where having two or more had a ~70% increase to loss cost
Historical gaps and cancellations are new and unique insights into a person’s past motor insurance behaviour that have been found to not-correlate with other data sets already used in insurance. Therefore they add incremental value, over and above existing data enrichment sources.
Using these insights, we have seen that an insurer can potentially improve their loss cost significantly.
With increased shopping and switching activity, sharing data and being able to build a more complete picture of someone you’ve not seen before or had limited exposure to is becoming increasingly important. This unique and powerful data source that’s directly related to a person’s motor policy history is being finalised now and looks set to provide a valuable tool in the insurer and broker’s armoury for pricing and underwriting.
How to access LexisNexis Policy Insights
- Contribute to play: all motor policy updates daily
- Understand the benefits through a full retro analysis
- Point-of-quote integration, direct or via software houses
- Priced per bind
The LexisNexis Policy History Motor database is hosted on the LexisNexis big data processing platform, known as HPCC Systems (High Performance Computing Cluster), that has evolved for more than a decade, supporting enterprise customers who need to process large volumes of data in critical 24/7 environments.
Visit the LexisNexis Risk Solutions website to find out more about how we support insurers.