Every December, I reflect on the previous year and what changes we here at LexisNexis Risk Solutions have seen in the insurance market. Last year at this time, we as an industry were still navigating changes and “the new normal.” Now, I’m no fortune teller, but I believe next year will be another turning point for our industry, as we face our future together and strengthen customer connections. In 2021, we tackled disruption head on and learned how to turn it into an advantage. In 2022, we welcome a new age of insights, where we are re-imagining the interconnected customer journey. I, for one, can’t wait to get started.
A Better Way to Mitigate Roof Risk
Roof-related losses are a growing concern for home insurers, and we’ve heard from you that you need ways to mitigate those losses and improve risk selection. So, in February of this year, we launched LexisNexis® Rooftop, a next generation risk assessment tool for home insurance carriers that includes data from aerial imagery, weather, location and a complete claims history view across personal coverages. In his blog, Which Data Sources are the Best Indicators of Roof Risk?, Randy Ishikawa, Director, Home Insurance Solutions, shared findings from an internal claims study that showed how integrating aerial imagery, machine learning and weather forensics into traditional underwriting roof inspection is an innovative way to acquire key information to determine the roof condition.
Aerial imagery is gaining traction in the home insurance market to help carriers accurately assess roof condition. It only supplies a snapshot of a roof at a specific date and time, however. Applying imagery analytics and machine learning can help more accurately assess the risk involved. Prasanth Kambhatla, Director of Data Science, published a series of vlogs sharing how imagery analytics can play a role in determining a roof’s true condition.
This year, the Annual Home Trends Report shares how the COVID-19 pandemic impacted home insurance claims, especially in non-weather perils like theft and water loss costs. You can read more about the newest report’s findings in George Hosfield’s blog articles covering both weather and non-weather-related loss costs for 2019.
Taking Telematics to the Next Level
The auto insurance industry is in constant motion. As consumer expectations shift so does risk propensity. You told us that you want solutions to personalize – and optimize – how your customers engage with you. One of the best tools to have in your customer experience arsenal is telematics. In April, we announced the launch of a new LexisNexis® Drive Metrics scoring model, a next-generation telematics-based scoring model for the auto insurance industry available through Telematics OnDemand. As Lisa Greenberg, Lead Data Scientist wrote in her blog article, Take Your Rating Plan to the Next Level with Telematics Driving Scores, the scoring model delivers 79% additional lift above standard rating factors to the predictability of driving risk.
As we saw during the COVID-19 related shutdowns the last couple of years, driving behaviors have changed and with it, interest in usage-based insurance coverage has risen. Marc Gordan, Director of Product Management, U.S. Connected Car, shared in his blog article, Unearthing the True Value in Telematics Data, that the true value in telematics data is being able to act on it.
Accelerating Automated Claims Adoption
While our industry has been moving toward using automated and touchless processes in recent years thanks to more consumers becoming comfortable using technology, the Covid-19 pandemic has pushed us to adopt automation more quickly. In January, Bill Brower, Vice President, Auto Claims, shared how carriers can leverage the latest data technology to increase their automation adoption rates, and why becoming proficient at virtual claims handling requires creating new workflows for quick responsiveness.
Life Insurers are Adapting and Innovating
Perhaps the market segment most impacted by the COVID-19 pandemic is life insurance. Insurers have been making strides over the years to improve the customer experience through digitization and accelerated underwriting and, like auto claims, the last two years have accelerated the focus on digital transformation to connect more consumers with life insurance. In March, Debra Gangelhoff, Vice President & General Manager for our Life vertical, wrote in a blog article that the most successful insurers will extend digital transformation to use cases before and after underwriting occurs. She also shared with the National Association of Independent Life Brokerage Agencies how LexisNexis Risk Solutions is helping insurers navigate the constantly changing life insurance market.
Facing our Future: Looking Ahead to 2022
This is only a sampling of how we’re partnering with you to challenge the entire industry to think differently and redefine the customer experience. As proud as I am of the accomplishments that we have made this year in turning disruption into advantage, I’m even more excited in 2022 to welcome you to this new age of insights where customer connections are completely reimagined. Our goal? To deliver insights that help you create stronger, more meaningful connections with your customers by designing a journey that exceeds their expectations. Stay tuned!