Industry-Leading Exchange Continues to Evolve with Connected Car Innovation, Delivering Solutions to U.S. Insurers for Better Data Aggregation, Analysis and Informed Insights
ATLANTA, June 28, 2022 /PRNewswire/ -- LexisNexis® Risk Solutions, a leading provider of data and analytics for the insurance industry, is celebrating the five-year anniversary of the LexisNexis® Telematics Exchange and its significant momentum in delivering transformational solutions. The Exchange is a source-agnostic platform for telematics-based driving behavior data and vehicle insights that has the ability to bring insurance carriers together with automotive manufacturers (OEMs) and other third-party telematics service providers to help improve the car ownership experience for their shared consumer.
"The significant milestone for the LexisNexis Telematics Exchange is the value that it brings to contributing organizations that want to help lower the total cost of vehicle ownership, and to insurers who leverage its solutions for better segmentation, risk assessment and an overall experience for consumers," said Adam Hudson, vice president and general manager, U.S. Connected Car, LexisNexis Risk Solutions. "We're extremely proud of the success we have seen through the Exchange. Ultimately, the goal is to provide solutions that allow vehicle owners to gain greater access to more personalized auto insurance products based on their individual needs."
The LexisNexis Telematics Exchange leverages decades of experience in data processing and normalization to deliver solutions more seamlessly throughout the insurance lifecycle. By participating in the Exchange, insurers, automakers and other telematics service providers can provide benefits to the overall customer experience, including:
- Consumers can take advantage of more personalized insurance discount offers and services as more and more automakers help them leverage connectivity and use their telematics data during the insurance shopping experience.
- Automakers and other participating telematics service providers can create additional touchpoints with their customers to provide better service and build brand loyalty, and capture additional value from their telematics platform investments.
- Insurers can use these new insights collected from real-world driving behavior to potentially offer better pricing for consumers, as telematics data is highly predictive of driving risk and is best used alongside other standard rating variables like claims history and credit-based insurance scores.
- Consumers can access their driving behavior data for auto insurance benefits without the hassle of managing an aftermarket device or app. At the same time, insurers can avoid time and resource intensive programs or scaling their own programs with endless integrations, multiple disparate data sources and individual scoring methodologies, in order to profitably offer customers benefits.
- Consumers' personal driving behavior data is truly portable, allowing them to take advantage of their good driving habits when shopping with any insurer using LexisNexis® Telematics OnDemand.
"We see the world of consumer telematics data, vehicle data and traditional consumer-related datasets used by the insurance industry today all coming together for a richer, more compelling understanding of the risk," said Bill Madison, CEO, Insurance, LexisNexis Risk Solutions. "The Exchange makes it possible for the insurance industry to provide new offerings for their customers with better risk segmentation in mind and more personalized products based on what the consumer needs."
Since inception, the LexisNexis Telematics Exchange has grown, hosting data from over 10 million vehicles, 252 billion driving miles and/or the equivalent of 19.5 million years of vehicle logging. The growing and deepening relationships LexisNexis Risk Solutions has with automakers mark this 5th anniversary, as more than 60% of the OEM market is now engaged and expected to be integrated with data available for insurers by the end of 2022.
This data set drives the LexisNexis Connected Car business' award-winning solution, LexisNexis Telematics OnDemand, which helps insurers use telematics data through a single access point to assess risk at point of quote, underwriting and renewal. Driving behavior data, when used in conjunction with traditional rating factors, provides a more accurate way to predict future losses and more appropriately evaluate the risk from the beginning of the relationship without the need for a usage-based insurance (UBI) trial or monitoring periods.
Telematics OnDemand delivers scores and attributes using the LexisNexis® Drive Metrics telematics scoring model, which leverages Exchange data and advanced analytics applied to driving behavior data. It delivers 79% additional lift above standard rating factorsi, with the potential to improve future performance of the model even further as additional driving behavior attributes and data sets are included.
The Exchange powers the LexisNexis® Vehicle History connected mileage solution, which delivers attributes for rating and underwriting to include mileage from connected vehicles. This enables U.S. auto insurers to use connected mileage data for insurance quotes, at policy renewal, and on an ongoing basis to support mileage monitoring programs for consumers interested in these insurance products.
Insurers can also accelerate the auto insurance buying and quoting processes for consumers with LexisNexis® Telematics IntelliMatch, a telematics-driven lead generation solution that can help insurers connect with consumers who are interested in insurance offers.
"Insurance carriers told us they believe they need to invest in telematics data now or run the risk of being left behind the competition within three to four years' timeii and a significant majority of those carriers believe that a telematics exchange can deliver scalability, providing real-time data that informs on driving behavior," said Hudson. "This is why 42% of the U.S. auto insurance market is contracted or currently contracting to access our Exchange solutions, including 5 of the top 10 insurersiii. We won't stop here, as there are industry challenges to solve and a growing, evolving exchange data set can be used in a variety of telematics solutions beyond UBI, while also creating the opportunity to improve the overall vehicle ownership experience."
For more information, visit LexisNexis Telematics solutions and learn more about our expanding LexisNexis Risk Solutions suite of Connected Car offerings for automakers and insurers.
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. For more information, please visit www.risk.lexisnexis.com, and www.relx.com.
i LexisNexis Risk Solutions 2021 Driving Score Whitepaper
ii LexisNexis Risk Solutions conducted an insurer survey in mid-2021. Among the top 50 insurers surveyed, 96% said they believe they need to invest in telematics data now or run the risk of being left behind the competition within three to four years' time.
iii Based on market share
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