LexisNexis Risk Solutions Develops Proprietary System to Interpret Vehicle Safety Features for Insurance Industry
LexisNexis® Risk Solutions, the leading data, analytics and technology provider for the insurance industry, has created the first purpose-driven Advanced Driver Assistance Systems (ADAS) and vehicle safety classification system for auto insurance pricing and claims analysis. The new classification system helps insurers break down barriers through access to relevant data and insights from automakers’ ADAS features. It will be leveraged in the soon-to-be released LexisNexis® Vehicle Build, a solution that identifies and categorizes specific ADAS equipped features at the VIN-level, enabling insurers to establish the differences in risk profile associated with these features.
- Machine learning analysis of 17-digit VIN specific manufacturer data used to create standardization, with car safety features grouped by purpose
- Insights represent first step in insurance rating for the effectiveness of the latest vehicle safety features in reducing collisions and insurance claims
- This classification will play a key role in helping insurers improve pricing segmentation and prepare for increasingly autonomous vehicles
Among new U.S. vehicles, 92.7% have at least one ADAS feature available as an option, according to SBD Automotive. Other safety feature classification systems may categorize features into just ‘Active’ or ‘Passive’ groups, but the new LexisNexis ADAS classification system, also uses myriad ADAS descriptors used by car manufacturers and groups those features by their specific purpose. This classification not only provides carriers with an understanding of the purpose of fifty plus ADAS features, but also draws relationships between them that are lost in other classification systems published to date.
LexisNexis Risk Solutions uses machine learning to logically sequence and classify vehicle safety features and components for insurance carriers, enabling insurers to more easily establish differences in the risk profile associated with these ADAS features and incorporate those differences into pricing and claims workflows. The company has extensive experience in this area, having normalized close to 2 million driving violations descriptions from over a hundred unique data sources into easily ingestible categories, now considered the insurance industry standard.
“There is a need to normalize or standardize the different features from auto manufacturers and deliver the data seamlessly to insurers for use in their workflows,” said Tanner Sheehan, Senior Director, Auto Insurance, LexisNexis Risk Solutions. “This challenge is a huge opportunity for us as ADAS features become more advanced with the move toward higher levels of vehicle autonomy and vast volumes of associated data. Over the last few years, we have been developing vehicle-centric solutions to enable insurers to adapt to increasingly sophisticated vehicles. This classification heightens the quality of our products by providing another layer of granularity and it provides insurers with the insights they need for more accurate rating and an improved customer experience.”
A global team of experts at LexisNexis Risk Solutions developed this proprietary classification for the benefit of insurers. U.S. insurers can request additional information on the LexisNexis Risk Solutions Vehicle Build ADAS classification system today. LexisNexis will be launching this classification system for European insurers soon.
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.