Being better informed to help make the right decisions for customers
Insurance is all about making smart decisions based on risk intelligence. That might be intelligence already held by the insurance provider, or combined with public and private datasets. Right now, the need for robust data to help make the right call for customers – whether to help calculate a return of premium on motor or to better assess commercial or residential property risk – has perhaps never been greater.
We can tell first-hand that the more data-led insights you have, the more accurate the risk assessment and subsequent pricing decision about the risk. But it can also be true that the more data providers you have to call out for, the slower the process becomes. No-one can afford to be slow when providing insurance quotes in the modern e-traded insurance space. This is all the more true at a time when concerns over business and personal finances are high and time to shop around is, for many, in plentiful supply. It leaves the door open for more agile competitors, and ultimately is not an efficient way of working – even when we’re not in the midst of a pandemic.
This is particularly relevant in both commercial and residential property where insurance providers need to gain a complete view of the property, the neighbourhood in which it sits, the perils such as flood and fire, the people in the property and the history of past claims related to that property.
Automating the property insurance market has not been without its challenges, due to the range of data the sector needs to understand and assess the risks fully. In particular, there has been a need to more fully integrate perils data given the impact of extreme weather events, most recently storms Ciara and Dennis, on insurers’ books.
Whether the asset to be insured is within the home, residential landlord, SME, or commercial space, insurance providers need to create a multi-faceted, 360 degree view of each risk, at speed.
But this is an issue that’s now being conquered with perils data available as a rating factor, alongside publically available data, identity verification, property and business data from a single access point. No call outs to multiple providers needed, no unnecessary delays for customers and the promise of pricing truly reflective of the individual property risk.
In fact the capability exists to deliver high volume, real-time risk data to help inform pricing and underwriting decisions, direct into the quoting systems used by the sector. This means insurance providers can gain the clearest picture possible of risk for right-first-time new business quotes, renewals and mid-term adjustments through one single point of entry.
By using one door onto the widest array of rating factors currently available, insurance providers can see greater efficiencies, improved decision making and enhanced customer experiences. Being better informed means making the right call for customers at every stage of the journey.
Authored by Neill Slane, Senior Vertical Market Manager, UK & Ireland, LexisNexis Risk Solutions
At LexisNexis Risk Solutions, we believe in the power of data and advanced analytics for better risk management.
With over 40 years of expertise, we are the trusted data analytics provider for organisations seeking actionable insights to manage risks and improve results while upholding the highest standards for security and privacy.
We enable insurers and brokers to improve decision-making, increase profitability and transform business performance with actionable insights from our data and analytics solutions. For more information, please contact risk.lexisnexis.co.uk/insurance or email@example.com.
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