New COVID-19-related Data from LexisNexis Risk Solutions
Helps Insurance Providers Better Understand Risk and Trends
of U.K. Motor Policyholders
LONDON, May 24, 2021 /PRNewswire/ -- U.K. motor insurance
providers can now identify at speed, at the point of quote, those
cancellations and gaps in cover that occurred during the national
COVID-19 lockdowns, versus those outside of that time. LexisNexis®
Risk Solutions, a leading provider of insurance data and analytics,
is offering new COVID-19 data attributes as an optional
enhancement, free of charge on its LexisNexis® Policy Insights
solution for insurance providers as part of their risk
assessment.
The new data attributes will help ensure that those individuals
who chose to cancel their motor insurance or allowed their
insurance to lapse during the COVID-19 lockdown period are priced
more fairly when they next shop for insurance, renew their
policy or make a mid-term adjustment.
Overall, Policy Insights is a powerful tool that helps predict
motor claims losses and assist insurance providers to understand
the risk of an individual based on their policy behaviour,
including risks associated with customers who cancel their policies
or have gaps in cover. The solution is built from market
contributions to the LexisNexis® Motor Policy History
database, which have been sourced over the past six years from over
85% of the market.
James Burton, senior director,
product management, for LexisNexis Risk Solutions said: "There are
many factors at play that insurance providers will want to be
sensitive to – a fall in household incomes, reluctance to use
public transport, working from home, and further local lockdowns,
as opposed to lack of responsibility in paying bills and generally
risky behaviour. Creating these new COVID-19 attributes has
therefore been a key priority to give motor insurance providers
valuable context for policy gaps or cancellations. It will help
them easily and clearly define lockdown-led decisions by
policyholders within the quote process to support fair pricing when
they next apply for motor insurance."
"Whilst the COVID-19 pandemic led to a global reduction in the
over number of insurance claims, the number of fraudulent motor
claims increased by 50% in 2020 compared to 2019i. This
further demonstrates the importance of insurers having information
about cancellations and gap in cover at a granular level in order
to conduct their own investigations and price accurately," said
Burton.
LexisNexis Risk Solutions is also able to identify key trends in
driving behaviour during the national lockdowns of
2020ii. In the first quarter of the year, the number of
trips on the road drastically reduced, and in February 2020 vs 2021, the number of trips at a
geospatial level dropped on average between 60-90%.
Although there was overall less activity on U.K. roads, there
was a sharp increase in the number of vehicles speeding, across all
road types such as urban, city or country, but a decrease in
extreme braking and acceleration. This correlates to a sharp
increase in fatalities on U.K. roads during the periods when 2020
lockdown restrictions were lifted. Whilst the latest industry
figures show a reduction in overall road fatalities from January to
June last year, the insight from LexisNexis Risk Solutions echoes
the concerns of insurance providers that these lockdown-related
driving behaviours could be transitioned into the post-pandemic
worldiii.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced
analytics to provide insights that help businesses and governmental
entities reduce risk and improve decisions to benefit people around
the globe. We provide data and technology solutions for a wide
range of industries including insurance, financial services,
healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information-based and analytics and decision tools for
professional and business customers across industries. For more
information, please visit www.risk.lexisnexis.co.uk and
www.relx.com.
Media contacts:
Alison Reeson, Clare Watson, Parm
Heer, Jane Lewis at HSL
0208 977 9132
lnrs@harrisonsadler.com
Regina Haas
Senior Director, Communications
Insurance and Connected Car
LexisNexis Risk Solutions
O: +1.678.694.3569
M: +1.678.896.1463
Regina.Haas@lexisnexisrisk.com
i LexisNexis Risk Solutions internal analysis
ii LexisNexis Risk Solutions internal analysis
iii Department for Transport: https://bit.ly/2QxL1lp
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