The changing risks created by the pandemic have highlighted the increasing importance of creating a holistic view of home insurance risk at quote and claim, allowing insurance providers to price fairly and accurately, support customers during the lifetime of the policy and expedite claims efficiently.
The good news is that high volume, real-time risk data is now being delivered direct into insurance quoting systems through the LexisNexis® Informed Quotes platform. Geospatial data including perils data has become accessible from this single access point, alongside over 40 further data enrichment sources, creating a comprehensive understanding of a property’s risk and the people that live there.
The next big advance is the creation of a market-wide home claims history database to provide a clearer understanding of past claims at point of quote, including the circumstances surrounding that claim, the settlement reached, and the parties involved.
Richer claims data can allow for greater pricing segmentation, helping individuals receive the right cover at an appropriate premium. It can also be used at point of claim, for example, to help the insurance provider assess whether an accident at home aligns with what has happened in the past and to help inform the claims management strategy for that particular incident. In essence, it gives the market valuable context to make pricing and claims decisions.
Ultimately, market-wide claims data should help the market price more fairly and deliver an improved customer experience at a time when consumers are looking for real value from their insurance provider.
Neill Slane is senior vertical market manager, claims, insurance, UK & Ireland at LexisNexis Risk Solutions