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Insurance Quote Manipulation Flagged as Research Reveals Half of U.K. Consumers Think It’s Fine to Fib

LexisNexis Quote Intelligence – Manipulate Module - Launches at BIBA Conference 2022

11/5/2022

London — In a study of 1,500 U.K. motor insurance buyers in April 2022i, 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 2018ii.  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.

By uncovering changes between quotes in key fields prone to manipulation, such as how many years the vehicle has been owned, years of license 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 acceptableiii to 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.” 

About LexisNexis® Quote Intelligence

LexisNexis Quote Intelligence helps insurance providers to improve loss ratios, avoid potentially fraudulent policies and make operational efficiencies, by combining an individual’s real-time quote behaviour and history in order to price more accurately. Quote Intelligence consists of three different modules: Connect, Tempo and Manipulate. Each module offers insights into both the main and named drivers on a quote, showing how different types of behaviours can be indicators of an individual’s risk. All modules can be injected at the point of quote through the LexisNexis® Informed Quotes platform.

 

Key Facts about Application Fraud in Insurance

  • ABI Data shows the value of Application Fraud more than doubled in 2020, however, this was dwarfed by the suspected value of application fraud at £877,035 recorded in 2020.iv
  • The average fraudulent insurance claim rose to £12,000 in 2020.v
  • Application fraud rose 200% in 2019.vi

Quote Manipulation Research by LexisNexis Risk Solutions April 2022 compared to
January 2018

Circa 1500 consumers surveyed, who buy their motor insurance online:

April 2022

January 2018

Any omission or adjustment of the information I provide to reduce the premium is acceptable, insurers and brokers charge too much as it is

21%

12%

Some omission or adjustment of the information I provide, especially those factors which I believe shouldn’t be included in the first place, is okay in order to reduce premiums

27%

31%

Failing to admit previous claims and/or adjusting information (e.g., demographics, address) to reduce premiums is unacceptable, regardless of whether or not I agree with the insurer using it as a pricing factor

52%

57%

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 and analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.co.uk and www.relx.com.

iLexisNexis Risk Solutions was not identified as the sponsor of this research, which was based on a survey of 1,546 consumers who had bought motor insurance online within the last 12 months and was conducted during April 2022
iihttps://risk.lexisnexis.co.uk/insights-resources/white-paper/white-lies-and-misbehaviour-report
LexisNexis Risk Solutions was not identified as the sponsor of this research, which was based on a survey of 1,500 consumers who had bought motor insurance within the last 12 months and was conducted during January 2018
iiiLexisNexis Risk Solutions was not identified as the sponsor of this research, which was based on a survey of 1,500 consumers who had bought motor insurance within the last 12 months and was conducted during January 2018
ivSource: ABI
vhttps://www.abi.org.uk/news/news-articles/2021/10/detected-fraud-2020/
vihttps://www.abi.org.uk/news/news-articles/2020/09/detected-insurance-fraud/

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