LexisNexis Rooftop solution helps home
insurance carriers price for roof risk more accurately
by helping improve loss cost and claims rate
relativity
ATLANTA, May 3,
2022 /PRNewswire/ -- LexisNexis® Risk Solutions,
a leading provider of data and analytics for the insurance
industry, today announced that LexisNexis® Rooftop, a risk
assessment tool for home insurance carriers, has been approved for
rating in a number of states in which wind and hail loss costs have
traditionally been high. Alabama,
Georgia, Louisiana and South
Dakota have recently been added to the growing list of
states that have approved the model. LexisNexis Rooftop has
been approved in each of the states where the model has been
filed.
LexisNexis Rooftop provides a predictive model to help home
insurance carriers segment properties based on roof risk. The score
is created by combining aerial imagery insights with
weather-related total loss experience, from auto and home insurance
claims insights, that assess pre-existing damage and the likelihood
of a future wind or hail claim. LexisNexis Rooftop's aerial imagery
insights come from Arturo, an artificial intelligence analytics
provider of property insights and predictive
analytics.
Home insurance loss ratios have been increasing, with the
average loss ratio now more than 89%, according to the latest
report from S&P Global Market Intelligence, and the six states
that have approved LexisNexis Rooftop represent close to one-fifth
(19.2%) of all hail losses nationwide. According to the 2021
LexisNexis Home Trends Report, Alabama, Georgia and Louisiana are three of the states with the
highest loss cost wind claims between 2015 and 2020, and
South Dakota has some of the
highest loss costs for hail over that same six-year period.
"Roofs that are in poor condition are more loss prone in both
catastrophic and non-catastrophic situations," said Erin Oswalt, director of home insurance at
LexisNexis Risk Solutions. As the market continues to see rising
levels of severity, frequency, and types of catastrophic losses,
home insurers are grappling with how to get ahead of major weather
events."
To help combat this, many home insurance carriers are evaluating
their rating plans to determine how they can better manage their
expense ratios. The LexisNexis Rooftop model shows up to a 20x lift
in loss cost relativity and an 18x lift in claims rate relativity
between the highest-risk properties and lowest-risk properties.
Together with the accompanying data attributes, LexisNexis Rooftop
can act as a tool for home insurers for faster, more cost-effective
decision-making.
"As roof loss ratios continue to rise, home insurance carriers
are consistently looking for ways to better segment properties as
it relates to roof risk," said Oswalt. "With LexisNexis Rooftop now
approved in six states, several of which have some of the highest
loss cost wind and hail claims in the country, and additional state
regulatory filings underway, home insurers serving these states can
better manage their expense ratios and price policies more
accurately."
To help insurers better assess risk, LexisNexis Rooftop:
- Provides a predictive risk score from 1-100 that indicates the
likelihood of a large weather claim within the next 12 months.
- Returns a score even if a recent aerial image is not
available.
- Delivers up to 80 actionable attributes including recent
weather events and related claims insights and dozens of imagery
insights from Arturo.
- Is available system-to-system in an automated process through a
single point of access where LexisNexis Risk Solutions delivers
industry leading data analytics solutions such as C.L.U.E.®
Property, LexisNexis® Current Carrier Property, LexisNexis®
Property Data Prefill and others.
LexisNexis Rooftop will continue to be filed in additional
states, and LexisNexis Risk Solutions has a filing support team
available to support direct filings from carriers.
For more information about LexisNexis Rooftop,
click here.
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.
Contacts:
Chas Strong
Director, Communications
LexisNexis Risk Solutions
706.714.7083
charles.strong@lexisnexisrisk.com
Donna Armstrong
Brodeur Partners for LexisNexis Risk Solutions
darmstrong@brodeur.com
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SOURCE LexisNexis Risk Solutions