The solution delivers advanced telematics risk scores to help insurers adopt telematics data from LexisNexis Telematics Exchange
LexisNexis Risk Solutions has launched its new solution, Telematics OnDemand, for easy integration of telematics-based driving behaviour data into insurer rating and underwriting workflows.
The solution was designed to enable US auto insurers, based on previously provided consent, to access a consumer’s existing telematics data in near-real-time at point of quote, to accurately determine a consumer’s driving behaviour pattern, said the company.
LexisNexis Risk Solutions US connected car vice president and general manager Adam Hudson said: “Telematics OnDemand shifts the paradigm for usage-based insurance. Previously many consumers agreed to a UBI policy without historical driving behaviour data, before knowing its true benefit.
“At the same time, US insurance carriers offered enrollment discounts meant to excite consumers without knowing the full risk to their books of business.
“Telematics OnDemand allows insurers to price risk more accurately earlier in the process with the consumer, and consumers receive a price that best aligns to their driving behaviour without having to go through a monitoring period. Now both parties benefit at the point of quote.”
Telematics OnDemand is designed to collect and deliver normalised telematics data
Telematics OnDemand collects and delivers normalised telematics data from US automakers, mobile apps, along with third-party services that participate in the LexisNexis Telematics Exchange.
The solution will deliver both a rich library of attributes and advanced telematics risk scores, enabling insurers to adopt telematics-based driving behaviour data from the LexisNexis Telematics Exchange while allowing them to deploy their own telematics risk scores.
LexisNexis said that the solution was developed with a set of features that address the requirements of the Fair Credit Reporting Act (FCRA).
Telematics OnDemand data can be easily accessed through the single platform where insurers already integrated with the company’s quoting, pricing and underwriting products, including C.L.U.E. Auto, LexisNexis Current Carrier, National Credit File and LexisNexis Motor Vehicle Records.
Also, insurance carriers can leverage the driving behaviour information, and use the data for risk segmentation, rating and pricing, improve loss ratios, reduce at-fault claims expenses and drive greater customer retention and loyalty.
Hudson said: “LexisNexis Telematics OnDemand meets the needs of both the insurer and the consumer by unlocking driving behaviour data within the existing LexisNexis prefill and underwriting platforms used today by more than 90% of auto insurers.
“It also leverages the expertise of LexisNexis in managing consumer data; our proprietary data linking and advanced analytics capabilities; and our relationships with the nation’s leading automakers through the Telematics Exchange.”