Claims history is one of the most important rating factors when it comes to selecting and pricing insurance risk. Relying on accurate data provided by customers in the application process poses a significant threat, with manipulation of information made easy and tweaking the truth becoming a perceived cultural norm – 25% of consumers admit to thinking it is acceptable to misrepresent information supplied in a motor insurance policy. Insurers and customers are left picking up the pieces: increased costs in the quotation process are ultimately passed on to the customer in the form of higher premiums.
Accessing data on declared and non-declared claims provides insight at point of quotation that, ultimately, will help to deliver a more profitable book of business and combat fraud.
LexisNexis Connected Claims empowers more accurate decision making at point of quote, with real time verification of previous claims information.
Manage risk better with real-time decisoning
In 2013, claims, particularly in the motor insurance industry were the most commonly detected source of insurance fraud and the most costly. That situation hasn’t changed and a potential policyholder with a high claims frequency poses a significant risk to insurance profitability.1
Our own research identified that 25% of consumers admitted to feeling it is acceptable to provide inaccurate information when arranging a motor insurance policy. 50% said that when this occurs, “claims should still be settled”.2
Without the correct assessment at the point of application insurers take the risk of letting in bad risk which can only add to widening loss ratios, damage profitability and diminish the customer experience.
LexisNexis Connected Claims provides significant benefit to insurers and brokers by providing access to claims information contained in the CUE database. It enables verification of the insurance risk with actionable insight on the proposers declared and non-declared claims history.
1 Source: The Association of British Insurers
2 Source: UK Consumer study 2013
LexisNexis Connected claims is available direct or through software houses, offering consistency across all lines of business. Powered by HPCC, the LexisNexis open source big data platform, Connected Claims can integrate with other LexisNexis products in real time, reducing costs and delivering a more accurate picture at point of quote.
Manage risk intelligently with real-time decisioning delivered at the point of quotation