Home and residential landlord insurance providers can gain instant verification of the key characteristics of a property – from number of bedrooms to year of construction, and much more – at point of quote.

At LexisNexis Risk Solutions we’ve launched LexisNexis Property Insights, the industry’s property data enrichment solution for the quotation process. This can be used to support pricing accuracy and risk assessment, whilst reducing the reliance on customers to confirm these details about a property to ease the buying experience.

The home insurance market has been under scrutiny in recent months over the issue of dual pricing. Robust, accurate data verification during the quotation process ensures insurance providers can utilise fair and effective pricing strategies from quote through to renewal. Designed to support both home insurance quotes and those for residential rental properties, Property Insights has been launched at a time when the buy-to-let market is seeing a resurgence, partly due to changing tenants’ priorities caused by the pandemic.

Our LexisNexis Risk Solutions studies of the property insurance market* have revealed the importance of accurate data early in the customer journey. Over a third (35%) of consumers auto-renew their home insurance, whilst 60% of those who do not auto-renew will in any case renew shorty after receiving their renewal notice.

It’s a situation that has traditionally left a short and challenging window of opportunity in which insurance providers can target these customers with their best price.

From rebuild cost to square footage and listed building status to roof type, home insurance providers can now assess risk based on insights from an extensive set of data about a property down to its individual characteristics going beyond the information traditionally used or requested in the quote process. LexisNexis® Property Insights is one of the first property data enrichment solutions to combine multiple predictive attributes for an individual address from the choice of 27 property characteristics from Outra, the predictive data science business.

This combined data is set to support the market as it adjusts to new pricing rules , allowing insurance providers to build a very detailed picture of risk for new business and renewal pricing and to help ensure products are suited the customer’s needs. It also reduces the reliance on customers to fill gaps in knowledge about their properties.

The data available from LexisNexis Property Insights can be injected at the point of quote through the LexisNexis® Informed Quotes platform, which connects to all major software houses. This offers a single point of access to a highly comprehensive range of datasets to help inform quoting and underwriting decisions, allowing insurance providers to speed up the quoting process and reduce referrals. The data can also be used to pre-populate application forms, for example rebuild cost and year built, saving consumers time while helping to ensure accurate and competitive quotations.

Our consumer research* found that while 57% of homeowners shop every time their policy is up for renewal, only 11% rarely shop, simply renewing each year with the same provider. Accessing a much wider set of data during the quotation process can help insurance providers utilise fair and effective pricing strategies for both existing and new customers in accordance with the new pricing regulations.

Competitive pricing, good customer service and a positive experience when filing a claim can all help to reduce the likelihood of customers switching to another provider . Access to a detailed, 360-degree view of risk through Informed Quotes can give insurance providers the power to deliver on these expectations and help demonstrate to the FCA the steps they are taking to build the most informed view of the risk.

By working with LexisNexis®  insurance providers can use Property Insights for granular data on property characteristics, in addition to other datasets already in use like perils to gain a deeper understanding of the risk.

The availability of this level of detailed, verified data can help insurance providers differentiate their offerings to customer segments and deliver more personalised quotes. In addition, improved risk assessment of the property helps to speed up the quote process for homeowners, improve loss ratios and profitably grow portfolios. This can be hugely beneficial in a competitive market where insurance providers cannot take loyalty for granted and where pricing is coming under much greater regulatory scrutiny.

LexisNexis® Property Insights comprises extensive and highly granular property data characteristics from Outra about the property. There are 27 different data attributes including number of bedrooms; bathrooms; kitchens; reception rooms; when the property was built; floor area; heating type; roof type; listed status; rebuild cost; sale value; rental value; tenure; last sale date; last rental date and parking availability.

*The LexisNexis Home Insurance study examined consumer behaviour and attitudes in this market, as they search for a provider they can trust; looking at how and where consumers buy home insurance. LexisNexis Risk Solutions was not identified as sponsor of the survey. For more insights from this research, download the free white paper ‘A Clearer View of Claims to Help Fight Fraud’.

Follow the link to the LexisNexis Risk Solutions website to find out more about how we support insurance providers.

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