This is perfect timing for LexisNexis Risk Solutions as the business forges a strategic partnership with Thatcham Research on vehicle data. As the Autonomous Vehicles Bill becomes law in the UK, the race is on to transition modern cars into smarter, safer modes of transport. The self-driving car might still be a long way off, but as new tech is tried and tested by Thatcham Research, insurance brands can understand more about risk via LexisNexis Risk Solutions.
Insurance Edge talked to James Burton, (above) MD for Insurance, at LexisNexis Risk Solutions U.K. & Ireland, to find out more.
IE; In some ways modern cars are data engines, constantly generating information, how will this new partnership benefit insurance brands?
JB; This strategic relationship LexisNexis Risk Solutions has with Thatcham Research is important for two reasons. First it gives insurance brands access to detailed data on vehicle build and specification. Secondly it allows those insurance clients to leverage the data, in all sorts of ways on pricing, claims and more. If you just take one area, like repair costs for example, the latest data from Thatcham Research on features and equipment within particular model ranges is crucial. We can make sure that detailed spec info gets to insurance providers for new quotes or renewals.
IE; Things like ADAS functions can vary greatly, even within one model, then there are lots of extras and options on top.
JB; That’s right and we are already at the point where 80% of new cars have some sort of ADAS feature, so the tech is trickling down. That makes it more important to know which models have particular features as standard and how Thatcham rates those features too. We already know that ADAS-equipped vehicles are around 31% less likely to be involved in a claim, so there is a huge safety benefit in knowing more about the vehicle’s safety features.
IE; Thatcham Research is famous for NCAP safety ratings, which is crucial when it comes to passenger protection. Do you think at some point in the future Thatcham Research would look at doing data ratings for cars? How the car handles, stores and shares data for example.
JB; Not sure how Thatcham would approach that long term, although it’s interesting to note how data has transformed the repair process, if say you look at something like windscreen replacement. There’s so much data linked to the windscreen now in a way that didn’t exist years ago. In some ways, knowing the finer details from windscreen data can help insurance providers steer a claim more effectively at the FNOL stage. It’s definitely essential to know how the sensors in the screen have to be calibrated and tested after any repair, so that the insurance provider then feels confident to hand the car back.
IE; In some ways knowing how the tech works, which parts supplier works with manufacturers on certain parts, really gives the insurer some insights into typical repair schedules, depending on the complexity of the ADAS systems?
JB; Definitely. The more features that need calibration, the more electronic or chip-based systems that might need replacement, all affects the repair time frame. We are also seeing new manufacturers from China enter the UK market with vehicles that have little history as regards to ADAS or tech systems. So again, Thatcham Research’s testing regime offers LexisNexis Risk Solutions – and insurance brands – the chance to
understand more about those new models; hybrids or pure EV. You can only price risk when you understand the entire build process of the new vehicle.
It’s not just Chinese brands either. With something like a new European car you might have some technology in there from a China or India based supplier too, there is lots of crossover on parts supply in the modern car manufacturing industry. So the collaboration we have with Thatcham Research is useful on that granular level too. Fact is, detailed knowledge on common parts could mean the difference between a six-week repair time schedule, or three or four months.
IE; So can insurance brands customise the data from Thatcham Research to gain deeper insights?
LN; Of course. LexisNexis Risk Solutions knows there’s lots of data out there, the secret is analytics and customisation depending on your niche within the Motor market. Integration of the data is easy, we also offer a demo service so that insurers can get a feel for how it works, how they can extract deeper insights. We want insurance brands to get exactly the right data trends and analysis possible, for themselves, as it empowers each brand.
IE; One theme at BIBA this year was longer term, 4 or 5 year partnerships between companies, are you seeing that at LexisNexis Risk Solutions now?
JB; Very much so. There’s more to be gained from long-term thinking and refining data science techniques across the insurance sector. In the same way that autonomous cars are evolving so is data science, into something where long-term strategy is the key to success. A smarter understanding of how ADAS, vehicle build, safety features and so on all affect overall risk is something every insurance brand in the car market can use. The data analytics can give you an edge in what is perhaps the most competitive sector of the UK insurance market. That’s the real value.
IE; Interesting stuff James, thank you.
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