LexisNexis Risk Solutions has launched Attract for Motor, a market-wide, policy data-based risk score built to more accurately predict insurance claims losses.
The “cocktail” of escalating claims costs, government tax measures and fraud driving an increase in pricing in the motor insurance sector required a consolidated understanding of individual risk in response, according to James Burton, director of product management for the UK and Ireland at LexisNexis Risk Solutions.
Attract for Motor, the culmination of several years of development and with support from motor insurance providers across the UK, uses proprietary motor insurance data to provide a stronger indicator of loss than an insurer’s own custom score model, or general financial scores, which are based on data non-specific to the insurance market.
Burton explained: “Attract for Motor is built specifically to predict insurance loss unlike other scores. When looking at Attract for Motor as a predictor of claims cost, we found that the worst 10% as segmented by Attract had a 200% higher claims cost than average.”
“Conversely, those in the top decile, or the top 10%, had a 41% lower claims cost than the average.”
Attract for Motor will deliver the scoring direct into insurer and broker systems with sub-second response times at point-of-quote, ensuring that the customer quoting process is streamlined. “This speed is possible because we use proprietary data sources and highly advanced analytics technology,” Burton added.
“A powerful tool at point of quote, Attract for Motor enables motor insurance providers to enhance the accuracy of their underwriting decisions, knowing that the score is a true reflection of the individual customer’s risk. This also results in fairer pricing for customers, tailored to their individual risk.”
Subscribe to the Claims Weekly newsletter and receive the latest claims news and analysis every Monday:
The post LexisNexis launches Attract for Motor to predict claims losses appeared first on Claims Media.