Industry-Leading Exchange Continues to Evolve
with Connected Car Innovation, Delivering Solutions to U.S.
Insurers for Better Data Aggregation, Analysis and Informed
Insights
ATLANTA, June 28,
2022 /PRNewswire/ -- LexisNexis® Risk Solutions,
a leading provider of data and analytics for the insurance
industry, is celebrating the five-year anniversary of the
LexisNexis® Telematics Exchange and its significant momentum
in delivering transformational solutions. The Exchange is a
source-agnostic platform for telematics-based driving behavior data
and vehicle insights that has the ability to bring insurance
carriers together with automotive manufacturers (OEMs) and other
third-party telematics service providers to help improve the car
ownership experience for their shared consumer.
LexisNexis Risk Solutions celebrates 5-yr
anniversary of Telematics Exchange and momentum of transformational
solutions.
"The significant milestone for the LexisNexis Telematics
Exchange is the value that it brings to contributing organizations
that want to help lower the total cost of vehicle ownership, and to
insurers who leverage its solutions for better segmentation, risk
assessment and an overall experience for consumers," said
Adam Hudson, vice president and
general manager, U.S. Connected Car, LexisNexis Risk Solutions.
"We're extremely proud of the success we have seen through the
Exchange. Ultimately, the goal is to provide solutions that allow
vehicle owners to gain greater access to more personalized auto
insurance products based on their individual needs."
Telematics Exchange Benefits
Consumers, Insurers and Automakers
The LexisNexis Telematics Exchange leverages decades of
experience in data processing and normalization to deliver
solutions more seamlessly throughout the insurance lifecycle. By
participating in the Exchange, insurers, automakers and other
telematics service providers can provide benefits to the overall
customer experience, including:
- Consumers can take advantage of more personalized insurance
discount offers and services as more and more automakers help them
leverage connectivity and use their telematics data during the
insurance shopping experience.
- Automakers and other participating telematics service providers
can create additional touchpoints with their customers to provide
better service and build brand loyalty, and capture additional
value from their telematics platform investments.
- Insurers can use these new insights collected from real-world
driving behavior to potentially offer better pricing for consumers,
as telematics data is highly predictive of driving risk and is best
used alongside other standard rating variables like claims history
and credit-based insurance scores.
- Consumers can access their driving behavior data for auto
insurance benefits without the hassle of managing an aftermarket
device or app. At the same time, insurers can avoid time and
resource intensive programs or scaling their own programs with
endless integrations, multiple disparate data sources and
individual scoring methodologies, in order to profitably offer
customers benefits.
- Consumers' personal driving behavior data is truly portable,
allowing them to take advantage of their good driving habits when
shopping with any insurer using LexisNexis® Telematics
OnDemand.
"We see the world of consumer telematics data, vehicle data and
traditional consumer-related datasets used by the insurance
industry today all coming together for a richer, more compelling
understanding of the risk," said Bill
Madison, CEO, Insurance, LexisNexis Risk Solutions. "The
Exchange makes it possible for the insurance industry to provide
new offerings for their customers with better risk segmentation in
mind and more personalized products based on what the consumer
needs."
LexisNexis Telematics Exchange
Milestone Solutions
Since inception, the LexisNexis Telematics Exchange has grown,
hosting data from over 10 million vehicles, 252 billion driving
miles and/or the equivalent of 19.5 million years of vehicle
logging. The growing and deepening relationships LexisNexis Risk
Solutions has with automakers mark this
5th anniversary, as more than 60% of the OEM market
is now engaged and expected to be integrated with data available
for insurers by the end of 2022.
This data set drives the LexisNexis Connected Car business'
award-winning solution, LexisNexis Telematics OnDemand,
which helps insurers use telematics data through a single access
point to assess risk at point of quote, underwriting and renewal.
Driving behavior data, when used in conjunction with traditional
rating factors, provides a more accurate way to predict future
losses and more appropriately evaluate the risk from the beginning
of the relationship without the need for a usage-based insurance
(UBI) trial or monitoring periods.
Telematics OnDemand delivers scores and attributes using the
LexisNexis® Drive Metrics telematics scoring model,
which leverages Exchange data and advanced analytics applied to
driving behavior data. It delivers 79% additional lift above
standard rating factorsi, with the potential to improve
future performance of the model even further as additional driving
behavior attributes and data sets are included.
The Exchange powers the LexisNexis® Vehicle History connected
mileage solution, which delivers attributes for rating and
underwriting to include mileage from connected vehicles. This
enables U.S. auto insurers to use connected mileage data for
insurance quotes, at policy renewal, and on an ongoing basis to
support mileage monitoring programs for consumers interested in
these insurance products.
Insurers can also accelerate the auto insurance buying and
quoting processes for consumers with LexisNexis® Telematics
IntelliMatch, a telematics-driven lead generation solution that
can help insurers connect with consumers who are interested in
insurance offers.
"Insurance carriers told us they believe they need to invest in
telematics data now or run the risk of being left behind the
competition within three to four years' timeii and
a significant majority of those carriers believe that a telematics
exchange can deliver scalability, providing real-time data that
informs on driving behavior," said Hudson. "This is why 42% of the
U.S. auto insurance market is contracted or currently contracting
to access our Exchange solutions, including 5 of the top 10
insurersiii. We won't stop here, as there are industry
challenges to solve and a growing, evolving exchange data set can
be used in a variety of telematics solutions beyond UBI, while also
creating the opportunity to improve the overall vehicle ownership
experience."
For more information, visit LexisNexis Telematics solutions and
learn more about our expanding LexisNexis Risk Solutions suite of
Connected Car offerings for automakers and insurers.
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. For more
information, please
visit www.risk.lexisnexis.com, and www.relx.com.
i LexisNexis Risk Solutions 2021 Driving Score
Whitepaper
ii LexisNexis Risk Solutions conducted an insurer survey
in mid-2021. Among the top 50 insurers surveyed, 96% said they
believe they need to invest in telematics data now or run the risk
of being left behind the competition within three to four years'
time.
iii Based on market share
Media Contact:
Regina Haas
regina.haas@lexisnexisrisk.com
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