In a development to reduce customer acquisition costs for brokers and improve the quality of risk passed on to insurers, LexisNexis Risk Solutions will be showcasing Attract™ for Motor, the sector’s first market-wide, policy data-based risk score, on stand B19 at the BIBA Conference 2018. Attract™ for Motor enables brokers to accurately predict insurance claims losses at point of quote as well as a customer’s propensity to cancel.
LexisNexis Risk Solutions analysis has shown that policyholders who cancel within the first 30 days of a policy are twice as likely to cancel again in future. Gaining this level of insight prior to policy inception will help brokers make more informed decisions about the risk versus the benefit of taking on the customer. It will also help identify customers who offer the greatest lifetime value so that brokers know where to focus their energies at acquisition and renewal.
Utilising proprietary motor insurance data, Attract™ for Motor provides a stronger indicator of loss than scores based on non-insurance specific data. The insurance-specific data upon which Attract™ for Motor is built includes policy history and past cancellations.
James Burton, Director of Product Management, Insurance, UK and Ireland, LexisNexis Risk Solutions said: “Attract™ for Motor is built specifically to predict insurance loss, unlike other scores, which help brokers pass on the right risks to the right insurers on their panel. To demonstrate the power of Attract™ for Motor in segmenting customers, in tests we found the worst 10% had a 200% higher claims cost than average. Conversely, those in the top 10%, had a 41% lower claims cost than the average.
“The beauty of Attract™ for Motor is that we can deliver the scoring direct into insurer and broker systems with sub-second response times at point of quote, ensuring the customer quoting process is streamlined.
“A powerful tool at point of quote, Attract™ for Motor enables motor insurance brokers to enhance their acquisition strategies and reduce their on-boarding costs, knowing that the score is a true reflection of the individual customer’s risk. This also results in fairer pricing for customers, tailored to their individual risk.”
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 and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.co.uk and www.relx.com.