LexisNexis Risk Solutions Launches Vehicle Build Product to Offer U.S. Insurers Much-Needed ADAS Details for Better Premium Evaluation and Pricing Segmentation

Rhea-AI Summary

LexisNexis Risk Solutions has launched LexisNexis Vehicle Build, a product designed to assist U.S. insurance carriers in enhancing their auto insurance underwriting processes. This solution provides comprehensive data on Advanced Driver Assistance Systems (ADAS) features in vehicles, helping insurers accurately evaluate risk. Analysis of 11 million vehicles indicated that ADAS-equipped vehicles experience a 27% reduction in bodily injury claims and a 19% reduction in property damage claims. The growing prevalence of these features emphasizes the need for better risk assessment in insurance pricing.

Positive

• LexisNexis Vehicle Build offers detailed insights into ADAS-equipped vehicles, improving underwriting accuracy.
• ADAS-equipped vehicles show a 27% reduction in bodily injury claims and a 19% reduction in property damage claims, indicating improved safety.
• Increased availability of vehicle-specific data allows insurers to enhance pricing segmentation.

Negative

• None.

ATLANTA, June 18, 2020 /PRNewswire/ -- LexisNexis® Risk Solutions, has announced the availability of LexisNexis® Vehicle Build, a solution that provides U.S. insurance carriers more accurate underwriting and auto insurance risk assessment and comprehensive information about the specific Advanced Driver Assistance Systems (ADAS) features equipped on a vehicle.

Automakers continually develop new ADAS features – sometimes releasing multiple within the same model year – and promote their efficacy in reducing accidents, but these features are often offered as an optional purchase to the car buyers. In addition, each automaker creates its own unique marketing name for its features for the sake of differentiation.  This variability in naming similar features, in combination with the difficulty in determining whether those features are actually equipped on a given vehicle, creates a challenge for insurers seeking to properly price the vehicles they underwrite. To address this challenge, LexisNexis Vehicle Build aggregates and normalizes even more specific manufacturing data than what is currently available at the 17-digit VIN number. The solution harnesses the proprietary LexisNexis ADAS Classification System, leverages the company's expertise in machine learning and advanced analytics, and seamlessly integrates the data into existing workflows, including LexisNexis® Auto Data Prefill.

LexisNexis Risk Solutions analyzed 11 million randomly selected U.S. vehicles within model years 2014-2019, and using proprietary information compared vehicles equipped with a set of core ADAS features against vehicles without those features. LexisNexis found that ADAS equipped vehicles showed a 27% reduction in bodily injury claim frequency and a 19% reduction in property damage frequency, but also found that severity for ADAS-equipped vehicles increased only slightly. 

"Vehicle-centric data is becoming more significant to U.S. insurers as cars continue to offer ADAS and other safety-related packages as add-ons to base models. Consumers who select these upgrades to their vehicles have an expectation that this choice will positively impact their insurance premium," said Tanner Sheehan, Associate Vice President of Auto Insurance, LexisNexis Risk Solutions. "By providing a classification of VIN-level insights with our Vehicle Build product, carriers are able to more easily evaluate the evolving vehicle technology and improve pricing segmentation."

According to a recent report by the Highway Loss Data Institute (HLDI), the projected number of vehicles equipped on the road by 2023 with front crash prevention will equate to a little more than 30% and approximately 24% for automatic emergency braking (AEB). LexisNexis internal analysis shows 76% of 2019 models had at least one core ADAS feature, which is up significantly compared to 18% in 2014 models. The growing prevalence of ADAS features underscores the importance for carriers to be able to account for features as they price policies. Having these insights is also proving instrumental in evaluating the effectiveness of the latest vehicle safety features in reducing collisions and insurance claims.

As cars continue to evolve with more complicated systems, connected car data will provide additional insights into the efficacy of ADAS-equipped cars, and with it relationships in the automotive OEM space, LexisNexis Risk Solutions is best positioned to leverage such data. This may include data insights into frequency of use, activation and deactivation instances and more. Today, LexisNexis Vehicle Build helps insurers:

• Gain valuable insights into vehicle-centric risk for more precise rating;
• Easily understand the definition and purpose of any given ADAS feature and how it specifically impacts driving safety;
• Save time through the convenience of single-source access and standardized, normalized data, regardless of automaker or model;
• Enhance underwriting and improve the customer experience through more efficient and informed decision-making; and
• Reduce workflow disruption through seamless integration into existing LexisNexis solutions.

For more information on LexisNexis auto insurance and connected car solutions, including an upcoming vehicle history enhancement, visit LexisNexis Auto Insurance.

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 across industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.

Media Contacts:
Mollie Holman
Brodeur Partners for LexisNexis Risk Solutions
Phone: +1.646.746.5611
mholman@brodeur.com

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SOURCE LexisNexis Risk Solutions

FAQ

What is LexisNexis Vehicle Build?

LexisNexis Vehicle Build is a product that provides U.S. insurance carriers with detailed information on Advanced Driver Assistance Systems (ADAS) features in vehicles, improving auto insurance underwriting.

How does ADAS affect insurance claims?

LexisNexis found that vehicles equipped with ADAS have a 27% reduction in bodily injury claim frequency and a 19% reduction in property damage claim frequency.

What is the significance of LexisNexis's analysis on vehicle safety?

The analysis of 11 million vehicles highlights the importance of ADAS features in reducing accidents and supports better risk assessment for insurance pricing.

What impact does the Vehicle Build product have on insurers?

The Vehicle Build product enhances insurers' ability to evaluate vehicle technology and improve pricing strategies based on detailed insights.

What is the projected growth of ADAS in vehicles by 2023?

According to a report, by 2023, about 30% of vehicles on the road are expected to be equipped with front crash prevention features.