LexisNexis Risk Solutions is focused on delivering actionable insights to the home, motor and commercial insurance markets based on market-wide consumer, business and location data. I think it’s fair to say we were doing big data before big data was cool.
As we work in partnership with the insurance sector to support accurate pricing and decision-making throughout the customer journey – from point of quote to claim – our primary mission during the pandemic has been to ensure our customers don’t have to think about us – we have got on with doing our job so that they can focus on their customers.
The last few months has seen the world tilt on its axis in a way not known before. The arrival of the coronavirus pandemic has brought about changes to our daily and business lives that many believed could only happen in far-fetched science fiction films.
As life with COVID-19 became an ongoing reality, we have all needed to adapt and I have been massively impressed at how well our people, our customers and our communities have responded to these unprecedented times.
Back in February LexisNexis Risk Solutions undertook a business continuity exercise which put us in a good place for when the lock down occurred.
Many of the employees across our business routinely work remotely, either full-time or part-time, so we were already well equipped for employees to work from their homes. The transition to full home working has therefore been quite straightforward, and it has been pretty much business as usual since that point. Needless to say, video conferencing, as for many businesses, has been hugely valuable for keeping in touch with colleagues and customers alike.
What has been really interesting is the change in risk for insurance providers as a direct consequence of COVID-19.
There has already been much discussion around motor insurance and how changes in travel patterns could drive demand for more personalised insurance. With the possibility of permanent changes in travel patterns (three out of five people said in a recent study that they would like to work from home more often than they did before the lockdown), I think we will see more interest in telematics and ‘pay as you go’ type usage-based insurance products for those who may be using their cars less in the future. This will increase the value and need for vehicle centric data to the insurance sector.
On the other hand, as people have stayed at home, we have seen household and commercial property risks change. Some insurers are reporting rises in fire claims, others will no doubt see higher accidental damage claims but fewer burglaries. There have also been reports of an increase in pet insurance policies as families decided lock down was the ideal time to get a pet.
During these rapidly changing times, our role is to help the insurance market understand and respond to these new risks through data. COVID-19 has accelerated rather than stalled some of the innovations we had planned. Policy history data is already bringing new insights to the motor sector, and we are now bringing to market LexisNexis® Vehicle Build, a new solution to better evaluate specific Advanced Driver Assistance Systems (ADAS), to support pricing and underwriting. The next step will be mileage data direct from the odometer to support the market’s understanding of vehicle usage further.
From a property perspective, we can now offer a single point of access to geospatial data, including perils data such as flood, fire and subsidence, alongside 42 other data enrichment databases for use by brokers and insurers at point of quote. In addition to this, we are taking the first steps to create a market wide home claims database to bring a further layer of risk understanding to support home insurance providers understand the granular information behind claims.
At the same time, the ability to visualise perils risks such as flood and fire right down to building outlines will be much improved through enhancements to our Map View geospatial intelligence visualisation tool.
The pandemic has emphasised that situations can change very quickly and often with little warning, so it is key that insurance providers have the insights and tools at their fingertips that will allow them to offer a service that their customers expect. It is those agile, data-orientated organisations that will not just survive but thrive.