UK Motor Insurance Providers To Start Testing Vehicle Safety
Data for Pricing
LONDON, June 18, 2020 /PRNewswire/ -- Motor insurance
providers across the U.K. can now start testing LexisNexis® Vehicle
Build, a new solution to better evaluate specific Advanced Driver
Assistance Systems (ADAS)i, to support pricing and
underwriting. LexisNexis® Risk Solutions, a leading data,
analytics and technology provider for the insurance industry,
is inviting motor insurers to test the data solution against
real-world performance and claims data, prior to launch later this
year.
To date, it has been a challenge for insurers to identify
exactly what ADAS features a specific vehicle is equipped with when
writing a motor insurance policy. This is because each car
manufacturer has created their own unique terminology, definitions
and naming structures – sometimes releasing multiple features
within the same model year. In addition, many items are chosen as
optional extras when a vehicle is purchased from new.
To address this challenge, data scientists at LexisNexis Risk
Solutions have developed an ADAS classification system
using machine learning to scan millions of lines of car
manufacturer vehicle data to logically sequence and classify
vehicle safety features and component's intended operation or
purpose.
This classification system provides the foundation for
LexisNexis Vehicle Build. Access to vehicle safety data will
help insurance providers factor for their presence throughout the
customer journey - in pricing, mid-term adjustments and renewals -
and establish the differences in risk profile associated with the
vehicles that have these safety features.
LexisNexis Vehicle Build will help insurers understand how
specific safety features behave, for example if a feature will
provide an alert or warning to the vehicle's driver when a
potential danger or hazard is detected. It will also allow insurers
to understand the purpose of features.
Carla Hopkins, Senior Vertical
Market Manager, LexisNexis Risk Solutions said: "Car manufacturers
continually develop and deploy new ADAS features and promote their
efficacy in reducing accidents. We therefore want to give the
insurance industry the confidence to price or create products with
a new level of vehicle build information to reflect the increasing
penetration of ADAS in the UK car parc. We have invested
significantly, gathering and normalising ADAS data, looking at it
through an underwriting lens, to give the industry new
vehicle-centric insights for pricing and underwriting."
The solution, available later this year, will provide insurers
with access to ADAS features at a VIN level, currently present on
approximately 70% of new passenger vehicles in the U.K. market.
Key Points:
- SMMT research shows 7 in 10ii new cars in the UK
have driver assistance systems and over half have adaptive cruise
control
- Vehicle Build has been created using machine learning
analysis of 17-digit specific manufacturer data used to create
standardisation, with car safety features grouped by
purpose
- Vehicle Build provides Definitions, Behaviour, Purpose of
any given ADAS feature and how it specifically impacts driving
safety;
- Convenient access to standardised, normalised data,
regardless of car manufacturer or model for use within insurers'
existing workflows;
- Insights represent first step in insurance rating for the
effectiveness of the latest vehicle safety features in reducing
collisions and insurance claims
- Development will play a key role in helping insurers reward
drivers for their investment in car safety features
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.com and
www.relx.com.
# # #
Media contacts:
Alison Reeson, Parm Heer, Jane
Lewis at HSL
0208 977 9132
lnrs@harrisonsadler.com
Regina Haas
Senior Director, Global Media and Analyst Relations
Insurance, Connected Car and Coplogic Solutions
LexisNexis Risk Solutions
O: +1.678.694.3569
M: +1.678.896.1463
Regina.Haas@lexisnexisrisk.com
[i] Advanced
driver-assistance systems, are electronic systems that help the
vehicle driver while driving or during parking to support
safety.
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[ii] The Society
of Motor Manufacturers and Traders Ltd (SMMT)
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