The culmination of several years development and with support from motor insurance providers across the UK, LexisNexis Risk Solutions, the leading data and analytics provider for the insurance industry, has launched Attract™ for Motor, the sector’s first market-wide, policy data-based risk score built to more accurately predict insurance claims losses.
As pricing in the motor insurance sector continues to rise, driven in large part by escalating claims costs and fraud, the need to gain a consolidated understanding of individual risk, based on shared intelligence on policyholders has become a matter of urgency for insurance providers.
Attract™ for Motor will give insurance providers an immediate understanding of risk by utilising proprietary motor insurance data. This means Attract™ for Motor will be a stronger indicator of loss than an insurer’s own custom score model, or general financial scores, that are based on data non-specific to the insurance market.
James Burton, Director of Product Management, Insurance, UK and Ireland, LexisNexis Risk Solutions said: “Attract™ 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% had a 200% higher claims cost than average. Conversely, those in the top 10%, had a 41% lower claims cost than the average.
“The beauty of this new product is that we can deliver the scoring direct into insurer and broker systems with sub-second response times at point of quote, ensuring the customer quoting process is streamlined. This speed is possible because we use proprietary data sources and highly advanced analytics technology.
“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.”