As many brokers know, people can be as economical with the truth as a politician with a history of party invites. It’s a case of gaming the system to get cheaper quotes. But the good news is that LexisNexis has identified patterns in the online search & submission data that can help brokers identify various risk profiles. Here’s the news on their new product, being launched at BIBA today.
LN are on Stand E8 by the way.
In a study of 1,500 U.K. motor insurance buyers in April 2022, some 21% confirmed they think it is completely acceptable to manipulate the information they provide for a cheaper motor quote.
This is a big jump from 12% in the same LexisNexis Risk Solutions study in 2018. Overall, 48% think it is completely or somewhat acceptable to deliberately misstate information to obtain a lower quote. Responding to a growing concern that motor insurance coverage and pricing accuracy are being affected by consumers deliberately misstating key facts as they shop online for insurance, LexisNexis® Risk Solutions, the data, analytics and technology provider to the insurance market, can now help confirm the probability of quote manipulation at the point of quote.
LexisNexis® Quote Intelligence, a solution that connects and compares thousands of motor insurance quotes from across the market, now offers an enhanced Manipulate Module to help motor insurance providers identify if information, such as vehicle modifications or where the car is parked overnight, has been changed across online quotes. This insight can then be used as an additional risk factor at new business to support fair and accurate pricing, as well as ensuring insurance providers can provide the right product for the consumer’s needs.
TRACKING CHANGES TO QUOTES
By uncovering changes between quotes in key fields prone to manipulation, such as how many years the vehicle has been owned, years of licence held, occupation, and estimated annual mileage, LexisNexis Quote Intelligence can help protect insurance providers from inaccurate pricing and potential fraud.
These insights could also help insurance providers protect consumers from their policies being rendered null and void if deliberate misstatements are uncovered at the claims stage. Uniquely, LexisNexis Quote Intelligence uses quote history data from across the motor insurance market
so that insurance providers have a holistic view of quote behaviour.
Martyn Mathews, senior director of personal and commercial lines at LexisNexis Risk Solutions Insurance U.K. and Ireland, says:
“Many key fields in the quote process are prone to manipulation, and we now know that consumer willingness to manipulate quotes is high. Even before the current cost of living challenge, our research found that two out of five motor insurance customers think it is acceptableiiito manipulate the information they provide when obtaining a quote from a price comparison site.
“LexisNexis Quote Intelligence provides real-time data insights to help identify potentially fraudulent behaviour for improved risk assessment and pricing accuracy at point of quote. This is all with the aim of treating the consumer base fairly, using a market-wide quote history database. We are delighted to launch the new manipulate solution at the BIBA Conference 2022. It offers an exceptional opportunity to show the real tangible benefits of industry collaboration on data-sharing initiatives such as this, as befits the theme of the event this year.”