MADRID — LexisNexis® Risk Solutions, a data, analytics and technology provider, now offers into the Spanish insurance market, LexisNexis® Vehicle Build. This new solution will provide insurers with a better understanding of the road safety benefits brought about by growing volumes of Advanced Driver Assistance Systems (ADAS) – a priority for both Dirección General de Tráfico (DGT) and the European Union. Mutua Madrileña, is set to be the first insurer to use LexisNexis Vehicle Build in Spain, which will reinforce its leadership position in the Auto insurance industry in Spain with more personalized and adjusted rates, as well as continuing at the forefront of the digital revolution in the sector.
In developing LexisNexis Vehicle Build, data scientists at LexisNexis Risk Solutions analysed more than 2.7 million vehicles and have been testing the solution with motor insurance providers in the U.K. and Europe over the past year. This analysis has revealed the increased penetration of ADAS in vehicles in Spain and the corresponding need for insurance providers to factor for ADAS features in pricing to take account of their material impact on claims frequencies.
Across Europe, ADAS fitment is expected to increase as legislation and more advanced technology work to make vehicles safer. New European Union regulations stipulate that every new vehicle sold in the EU from mid-2022 onwards must be equipped with several ADAS features. This initiative will significantly contribute to the Vison Zero objective set by the EU which aims to have zero fatalities on the road by end of 2050.
Yon Munilla, managing director for Spain, Insurance, at LexisNexis Risk Solutions said: “Having a key industry partner like Mutua Madrileña on board demonstrates how this type of data enrichment is business critical in the short term. Trim level information isn’t sufficient, as some of these features are optional. With access to detailed ADAS information at VIN level, insurers become more competitive as they will be able to price their policies more accurately. They can also offer personalized products according to the characteristics of each vehicle and their drivers, as they have access to the data at the point of quote.”
Munilla also stressed the potential of ADAS to increase road safety and help reduce road traffic deaths as technology develops and the number of ADAS equipped vehicles grows. LexisNexis Risk Solutions supports the DGT initiatives to maximise the societal benefits that ADAS brings. “The analysis of the influence that ADAS may have on the reduction of loss levels will help us improve road safety and will also have an impact on motor insurance rates,” said Pere Navarro, the director-general of DGT.
Within LexisNexis Vehicle Build, there are a set of core ADAS features that have been found to deliver a reduction in claims frequency. 69% of cars analysed in Europe by LexisNexis Risk Solutions were equipped with at least one core safety feature and are therefore less likely to have an at fault insurance claim. As technology develops, this percentage is expected to increase.
“More and more drivers are interested in investing in ADAS safety equipment for their vehicles, so having LexisNexis Vehicle Build at our disposal will allow us to offer them a more competitive pricing process tailored to each case. The increased use of these devices will contribute to safer driving and we trust that it will also translate into a reduction in the accident rate ”, states Federico Vicioso, Actuarial Statistical Director of Mutua Madrileña.
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 and analytics for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.