LexisNexis Risk Solutions is introducing a new solution which empowers the UK general insurance market, enabling providers to have a better understanding of their customers’ claims.
The new LexisNexis Precision Claims is a market-wide contributory claims database created to support risk assessment at any point of the customer journey. It allows insurance providers to access granular claims data gathered from across the market from one platform. LexisNexis explained that Precision Claims not only helps in the identification of undisclosed claims, but also helps insurance providers predict claims losses based on an individual’s claims history.
Precision Claims will enable insurance providers to access home and motor claims data for a person, a property and a vehicle including the type of claim, the circumstances and the settlement. According to LexisNexis, this will allow UK insurance providers to cross-check claims history across motor and home for the first time.
“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,” said LexisNexis Risk Solutions UK director of insurance claims product management Carla McDonald. “Lack of a cross-market view may also have impacted the sector’s ability to fully understand the customer’s needs.”
According to LexisNexis, claims data is already being used in a similar way in the US. It was thanks to claims data analysis that the US industry found that 41% of consumers underreported their previous motor claims, and that Americans with undisclosed motor claims have 34% higher average claims costs, compared to people with the same number of disclosed claims.
McDonald added that based on the data LexisNexis gathered from US claims, it found that individuals with three or more motor claims incur home claims losses that are about 40% higher in cost than those without motor claims.
“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,” the director said.
