LexisNexis Telematics OnDemand Delivers Telematics at Point of Quote for the U.S. Insurance Market, Eliminates Need for Usage-Based Insurance Trial and Monitoring Periods
LexisNexis® Risk Solutions launched LexisNexis® Telematics OnDemand, a solution that seamlessly integrates telematics-based driving behavior data into insurer rating and underwriting workflows. With consent previously provided, the solution enables U.S. auto insurers to access a consumer’s existing telematics data in near-real time at point of quote in order to more accurately determine a consumer’s driving behavior pattern. Telematics OnDemand allows carriers to offer more personalized pricing to the consumer with the potential opportunity for an immediate discount. It is also offered at renewal for consumers and insurers to continue to benefit from powerful insights provided by telematics-based driving behavior data.
Telematics OnDemand delivers both a rich library of attributes and world-class telematics risk scores from LexisNexis Risk Solutions. This provides insurers the benefits of adopting telematics-based driving behavior data from the LexisNexis® Telematics Exchange, while still retaining the flexibility to innovate and deploy their own telematics risk scores and analytics strategies. Telematics OnDemand is also built with a robust set of features designed to meet the requirements of the Fair Credit Reporting Act (FCRA).
Telematics OnDemand is built to collect and deliver normalized telematics data from U.S. automakers, mobile apps, as well as third-party services that participate in the LexisNexis Telematics Exchange. Currently, the Exchange includes General Motors, Mitsubishi Motors North America and Nissan North America. When consumers engage with their automaker for connected services, they can take advantage of the option to share their driving behavior data. By consenting to share their telematics data, the consumer may be able to receive discounts on their insurance, participate in safe driving reward programs or tap into other value-added services. Insurance carriers can leverage the driving behavior information with no upfront monitoring period when a consumer first seeks a quote on their auto insurance. Insurers can use this data for risk segmentation, rating and pricing, ultimately to help improve loss ratios, reduce at-fault claims expenses and drive greater customer retention and loyalty.
LexisNexis Risk Solutions is working with multiple carriers to further expand the availability of telematics at point of quote. Market-leading InsurTech Root Insurance is the first to adopt Telematics OnDemand.
“Root was founded on the principle that auto insurance rates should be based primarily on driving behaviors, not demographics,” said Kumi Walker, chief business development & strategy officer at Root. “Together Root and LexisNexis Telematics on Demand will offer immediate, personalized, fair insurance rates to good drivers based on data that comes directly from their car.”
“Telematics OnDemand shifts the paradigm for usage-based insurance. Previously many consumers agreed to a UBI policy without historical driving behavior data, before knowing its true benefit. At the same time, U.S. insurance carriers offered enrollment discounts meant to excite consumers without knowing the full risk to their books of business,” said Adam Hudson, vice president and general manager, U.S. Connected Car, LexisNexis Risk Solutions. “Telematics OnDemand allows insurers to price risk more accurately earlier in the process with the consumer, and consumers receive a price that best aligns to their driving behavior without having to go through a monitoring period. Now both parties benefit at point of quote.”
Telematics OnDemand data can be easily accessed and leveraged through the single platform where insurers already integrate with LexisNexis, including the world-class quoting, pricing and underwriting products, C.L.U.E.® Auto, LexisNexis® Current Carrier®, National Credit File and LexisNexis® Motor Vehicle Records. This makes deployment of telematics-based driving behavior data more efficient, without disrupting existing workflows. The solution is delivered both as a system-to-system feed and as an indicator within LexisNexis® Auto Data Prefill. Insurers also benefit from the LexisNexis® Consumer Center with more than 20 years of experience as a trusted custodian of consumer data, helping to ensure transparency, accuracy and privacy protections in alignment with FCRA guidelines.
“LexisNexis Telematics OnDemand meets the needs of both the insurer and the consumer by unlocking driving behavior data within the existing LexisNexis prefill and underwriting platforms used today by more than 90% of auto insurers,” said Hudson. “It also leverages the expertise of LexisNexis in managing consumer data; our proprietary data linking and advanced analytics capabilities; and our relationships with the nation’s leading automakers through the Telematics Exchange.”
Telematics OnDemand complements the growing suite of LexisNexis Risk Solutions telematics offerings for insurance carriers.
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-based analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
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