LexisNexis® Scores More Small Business Insurance Risks Through Highly Predictive LexisNexis® Attract(SM) for Business Owners Underwriting
LexisNexis® Risk Solutions today announced the launch of LexisNexis® Attract(SM) for business owners underwriting, a proprietary model providing commercial insurers with high match rates and accurate loss prediction of small commercial business owner risks. Using LexisNexis Attract, insurers are then able to improve pricing segmentation and identify profitable market segments within their books of business and prospects.
"Hit rates for business credit on small commercial insurance risks has ranged from 40-50 percent on average, but using Attract with LexisNexis business data assets can lift hit rates as high as 90 percent," said Ernie Feirer, vice president and general manager, commercial insurance, LexisNexis. "The Attract for business owners underwriting model was built on consumer credit from the business owner community and developed using policy and loss data representing over $1.6 billion in commercial premiums to provide a significant lift in loss predictability."
"The use of data and analytics in commercial insurance continues to grow as unique data assets are being used in different ways to better predict risk and align price," said Deb Smallwood, Founder, Strategy Meets Action. "In the case of insurance for small business owners, specialized scoring models offer a valuable opportunity for insurers to enable straight through processing and pricing precision automation, an advancement from the traditional means."
While insurance carriers typically use business credit for underwriting, the analysis of historical data combined with personal credit attributes of the business owner has proven to be much more predictive of insurance loss. A propriety model, a LexisNexis Attract score ranks commercial insurance risks by predicted loss ratio and/or loss frequency.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions (www.lexisnexis.com/risk/) is a leader in providing essential information that helps customers across industries and government predict, assess and manage risk. Combining cutting-edge technology, unique data and advanced analytics, LexisNexis Risk Solutions provides products and services that address evolving client needs in the risk sector while upholding the highest standards of security and privacy. LexisNexis Risk Solutions is part of Reed Elsevier, a leading global provider of professional information solutions across a number of sectors. Our insurance solutions assist insurers with automating and improving the performance of critical workflow processes to reduce expenses, improve service and position customers for growth.