Thatcham Research, which has been delivering vehicle risk data on behalf of its members and the Association of British Insurers (ABI) for two decades, has partnered with data analytics provider Verisk.
The tie-up will see Verisk incorporate Thatcham Research’s extensive ‘Variant Code’ dataset into Verisk’s motor insurance solutions. Containing data for over 50,000 vehicle variants, the unique Thatcham Research dataset provides data granularity on features such as ADAS (advanced driver-assistance systems) and keyless and connectivity systems in UK vehicles.
Variant Code is in response to the growing variety of car features, both standard and optional, and the limitations of the existing ABIcode, which is assigned when a carmaker first releases a vehicle derivative. It was noted that the 2018 Ford Focus 1.5 EcoBlue and the 2019 Ford Focus 1.5 EcoBlue, for instance, have different features but share the same ABIcode.
“This is about accurate risk assessment at a uniquely granular level,” said Thatcham Research chief digital officer Dan Payne. “Variant Code offers a competitive advantage, empowering Verisk’s insurer customers to make more informed and intelligent decisions, and price according to the features present on a particular model variant.
“This is fundamental as vehicles evolve and technologies that were once the preserve of high-end models are increasingly made available at entry level.”
Verisk – which provides a data enrichment service used by insurers to retrieve vehicle data, vehicle rating information, risk alerts, and damage history – will now be offering the Variant Code data as an add-on. According to Thatcham Research, new Variant Code data is published on a weekly basis.
Sean Moriarty, operations manager at Verisk, commented: “Carmakers have their own naming conventions for vehicle features, which can be problematic. However, Variant Code provides this information using a consistent nomenclature, ensuring the quick and easy identification of these features.
“Variant Code addresses a long-standing challenge to the accurate underwriting of new vehicle models, benefitting both insurers and insureds. Until now, there has been a lack of clarity regarding the fitment of certain features across vehicle variants and their potential positive or negative impact on risk.”
The Variant Code dataset provides 98% coverage of the car parc released in the UK since 2015.
