Ahead of BIBA 2021 IE magazine wanted to catch-up with LexisNexis Risk Solutions UK and Ireland to learn more about the latest trends and insights for brokers. From automated NCD validation to Emailage Rapid checks, the broker tool kit for the 21st century is out there.
Martyn Matthews, LexisNexis Risk Solutions Senior Director, Personal Lines for UK & Ireland, and James Burton, Senior Director of Product Management, told us more.
IE; Breaking news – You are launching a new data enrichment solution specifically for the broker market which includes automated NCD validation. Tell us how this magic happened.
JB; Proof of No Claims Discount is just one part of our new solution – Broker Intelligence. NCD has been one of those bugbears that goes back to pre-internet days when people would post the certificates out. So it was something we wanted to solve because it frees up lots of time for brokers. Basically we created a policy history contributory database over 6 years ago that feeds in key insights around the individual’s insurance history at quote, so you get a picture of when their car was covered and when they switched, or had a gap in cover of cancellation, so you are getting a holistic view.
That gathering of data automatically really helps SME size brokers, as they might not have the time and staff to check and chase up proof of NCD, as quickly as say a big name insurer. But the system goes beyond that because it packages the data from a number of sources, so that pricing the risk becomes easier – and more accurate.
IE; Let’s say a new broker launches online, wants to cover motorhomes, caravans etc they can just bolt-on this product and it’s one less headache?
MM; That’s right. I can think of one example of a smaller scale broker who had customers dropping off proof of NCD at their office. Then the pandemic arrived and the office was closed, so those pieces of paper just lay on the floor. There is a huge shift towards digital now, in every aspect of the broker process.
Having said that, some customers do prefer face-to-face, more personalised service, so what all this technology can do is let brokers add that personal touch where it is needed.
IE; What do LexisNexis have lined up for BIBA this week?
MM; Customer expectations have changed in the last year or so. Most people just expect things to simply work online, to be more automated. So we will be showcasing all the ways that processes can be streamlined, so brokers can make sure that their online offer delivers 100 percent. Some aspects of claims might need a more personal touch, but a great deal of risk pricing, quote and policy admin can be managed by software.
So we will be trying to explain how LexisNexis products can really add value in a digital marketplace. The feeling we are getting pre-BIBA is that brokers are really raising their game in terms of consumer choice, because everyone in the insurance sector knows that customers are shopping around online for the best deal.
JB; Another thing we want to tell people about at BIBA is how LexisNexis Risk Solutions products can help with the entire Know Your Customer issue. What you can get is a very rounded view, a single view of that customer’s insurance products and previous interactions. What this means is that you can really bring all that data together and get an in-depth understanding of the customer.
IE; Earlier in 2021 you launched an Emailage an ID validation tool, what is that for, how does it add insights for insurance professionals?
JB; The Emailage tool is interesting as it looks at how old an email address is, how many times it has been used previously, for quotes or claims perhaps. So, say as a broker you see a new email address, or an email that has been linked to a fraud investigation in the past, then that gets flagged up for you.
Equally an older, more established email address gives you a data trail to integrate into your systems, so you’re building trust through data. You understand more about the customer’s previous insurance history too.
MM; One of the things we see in the market is a demand for genuinely useful data, because there is a wealth of information out there, but what is it that means something to your brokerage or insurance brand? If you specialise in a particular niche then you need a different set of insights.
One good example of this is the Commercial market, because that has been a bit under-served in the past. There’s been a big focus on the motor section when it comes to data, telematics and connected cars. Rightly so, as it is an exciting time in the motor market. But there is huge potential in layering pieces of data together in the Commercial sector too. Once you start adding the physical building history, individual or company claims history, email age, flood maps and more on top of each other, you really get a deeper insight into the risk.
So pricing becomes more accurate, whether it’s a first time quote, or a renewal.
You understand more from the data that’s being fed into your software and that enables you to offer better choice. That is one thing we see as being very important at BIBA, brokers looking for ways to offer unique choices, to stand out and offer something extra to their clients.
IE; What else do you expect to see at BIBA 2021?
MM; Everyone has got used to a digital experience over the last year, things just have to work – that’s the expectation, from brokers and customers alike.
We will also be talking about the way our data can track policy start and early cancellation trends. There is an admin cost each time someone cancels a motor policy early, say a few days after inception, so that is data worth knowing. It can also be an indicator of potential fraud.
Another thing we expect to be asked about is linking named drivers together, because that is another area in the motor market where you can spot potential problems before they arise. When one named driver is also named on say 3 or 4 other policies then you need to flag that up.
JB; We also think that brokers are asking more about how data can enhance their KYC (Know Your Customer) process, which is all tied to compliance and better customer experience alike. We want to show that bringing multiple databases together, analysing that info in a structured way, can really pay off for brokers.
IE; It’s very much an online broker world now, thanks for your time