Industry-leading ADAS Solution Uncovers Reduction in Claims Frequency to Help Benefit U.K. Motor Insurers' Pricing Accuracy
LONDON, Nov. 3, 2021 /PRNewswire/ -- Admiral, the U.K.'s largest motor insureri, is set to use Advanced Driver Assistance Systemsii (ADAS) data in its pricing and underwriting through LexisNexis® Vehicle Build, developed by data, analytics and technology provider, LexisNexis® Risk Solutions.
The culmination of several years research and development, LexisNexis Vehicle Build is a new solution to help insurance providers understand and evaluate the specific standard and optional ADAS fitted to a vehicle at a Vehicle Identification Number (VIN) level, to help improve loss and expense ratios and support competitive pricing.
The data scientists at LexisNexis Risk Solutions analysed more than 2.7 million vehicles and have been testing the solution with motor insurance providers in the U.K. and Europe over the past year. This analysis has revealed the increased penetration of ADAS in vehicles in the U.K. and the corresponding need for insurance providers to factor for ADAS in pricing. LexisNexis found that on average, there are eight safety features per vehicle in the U.K. car parc, making the U.K among the leaders in the adoption of automated vehicle safety systems across Europe.
Mark Gabriel, head of van insurance and motor product for Admiral said: "The more we can understand about the specific ADAS fitments to the car, the more accurate our pricing. This is not only fairer for our customers who have invested in ADAS equipped vehicles, but having this insight through LexisNexis Vehicle Build also helps prepare for the future where cars will have increasing levels of autonomy."
Within LexisNexis Vehicle Build, there are a set of core ADAS features that have been found to deliver a reduction in claims frequency. 69% of cars analysed in Europe by LexisNexis Risk Solutions were equipped with a core safety feature and are therefore less likely to have an insurance claim. As technology develops, this percentage is expected to increase. Data from The Society of Motor Manufacturers and Tradersiii shows eight in 10 new cars are currently available with driver assistance systems.
Carla McDonald, senior manager, motor insurance, U.K. and Ireland, at LexisNexis Risk Solutions, said: "Having a key industry partner like Admiral on board cements what we knew all along - that this type of enrichment will be business critical as ADAS becomes more prevalent in the driving behaviour of newly manufactured vehicles. The crucial benefit of LexisNexis Vehicle Build is the ability to provide ADAS fitment information on not only standard but also optional features at a VIN-level, which have been normalised by LexisNexis across automakers in the market. A good portion of these features are selected extras, and trim-level information as an alternative simply can't tell you if that optional feature is on the vehicle or not.
"ADAS features exist to avoid or reduce the seriousness of collisions, so as the features become more common, the dynamics of claims will change. For insurance providers like Admiral, this aligns to their business objectives, helping to improve their bottom line. Using our classification of ADAS from millions of lines of data, motor insurance providers can understand and use the features of a car and their relative performance to improve their pricing accuracy."
About LexisNexis Risk Solutions LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.co.uk and www.relx.com.
Media contacts: Alison Reeson, Clare Watson, Jane Lewis, Parm Heer at HSL M: 07876 597466 O: 0208 977 9132 email@example.com