Vehicle Build Service Delivers Vehicle Safety Data Insights into Insurance at the VIN Level
At LexisNexis® Risk Solutions we have created a solution to help insurance providers across Europe to better evaluate specific Advanced Driver Assist System (ADAS) features and vehicle safety features for pricing and underwriting. Developed specifically for motor insurance providers, LexisNexis® Vehicle Build is now available for testing.
Car manufacturers continually develop and deploy new ADAS features – sometimes releasing multiple within the same model year – and they promote their effectiveness in reducing accidents. To date, it has been a challenge for insurers to identify how a vehicle is equipped when writing a motor insurance policy as each car manufacturer has created their own unique terminology, definitions and naming structures for ADAS features. In addition, many items are still not fitted as standard and must be chosen as a specific option when the vehicle is new.
To address this challenge, our data scientists at LexisNexis Risk Solutions developed an ADAS classification system using machine learning to scan millions of lines of car manufacturer vehicle data to logically sequence and classify vehicle safety features and their intended operation or purpose.
Serving as the foundation for LexisNexis Vehicle Build, this will help insurers factor for their presence in pricing, adjustments and renewals and establish the differences in risk profile associated with the vehicles that have these safety features.
Car manufacturers continually develop and deploy new ADAS features and promote their efficacy in reducing accidents. We therefore want to give the insurance industry the confidence to price or create products with a new level of vehicle build information to reflect the increasing penetration of ADAS in the European car parc.
We have invested significantly, gathering and normalising ADAS data, looking at it through an underwriting lens, to give the industry new vehicle-centric insights for pricing and underwriting.
Harnessing the proprietary, purpose driven-insights from the classification system, LexisNexis Vehicle Build is currently testing real-world performance and claims data to help insurers rank ADAS feature performance for better underwriting decisions. The solution, available in production later this year, will provide insurers with access to these ADAS features at a VIN level to confirm what is actually fitted and not just available as an option, as well as confirm the type and combination of ADAS features.
Vehicles from 2014 are considered to be within the ‘ADAS era’, as that is when we see ADAS feature becoming more widely available on cars. As expected, this trend has continued and according to SBD Automotive, across Europe, the average number of ADAS features offered on a given new model increased from 4.2 in 2017 to 7.1 in 2020.
This represents a year-on-year growth rate of 19.1% but we have found that it is more than just the overall number of ADAS features offered that insurance providers should consider: Vehicle Build confirms the actual fitment and not just availability. Our LexisNexis® internal research shows that the types and combinations of ADAS features – in their multiple configurations – can provide even greater precision in managing insurance risk.
LexisNexis Risk Solutions, a unit of RELX Group, is a global data technology and advanced analytics leader, with customers in over 100 countries worldwide.
Follow these links for information on our Connected Car Team, the Global Telematics Platform or the LexisNexis Risk Solutions website for US insurance or UK insurance to find out more.
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