LexisNexis Risk Solutions spearheads
improvements in NAP data for the motor insurance industry
LONDON, Feb. 28, 2023 /PRNewswire/ -- As nearly a third
of U.K. drivers report that they are driving less to keep costs
downi, new research from LexisNexis® Risk Solutions, the
data, advanced analytics, and technology provider to the insurance
market, indicates that one in three purchasers of motor insurance
would be interested in buying a non-annualised policy (NAP) in the
next 12 months, with pay-as-you-go policies having the most
appealii. The findings are detailed in a new white
paper, "Flexible, favourable, practical, profitable: Uncover
consumer perceptions of non-annualised policies (NAPs) and their
growing value in the motor insurance market."
In preparing the white paper, LexisNexis Risk Solutions
undertook research with Consumer Intelligence to demonstrate the
awareness, experiences and appetite for temporary, short-term and
pay-as-you-go motor insurance cover. It also highlights the need
for greater industry collaboration to build more intelligence
around non-annualised policies to support underwriting, pricing and
reduce fraud.
Key findings:
- 5.4 million U.K. motorists have used at least one NAP during
the last two years
- Recognition of the concept is high with 71% saying they are
familiar with NAPs for motor insurance
- The most commonly cited reason for using a NAP (38%) is a need
to borrow someone else's car, but other reasons for their use
include a need for additional flexibility and policyholders using
their car less
- NAP users are more likely to be younger, have higher incomes,
have children in their households and live in metropolitan areas.
They are also more likely to adopt new technology quickly than are
non-users
- 12% of NAP users are gig economy drivers for ridesharing
services, compared to only 1% of non-users
Andrew Ponter, insurance product
manager, U.K. and Ireland,
LexisNexis Risk Solutions, said, "Consumers want choice and
flexibility―perhaps now more than ever as household budgets are
squeezed. People are also thinking differently about their car use
and the associated costs from an environmental perspective. NAPs
for motor insurance can help consumers protect themselves when
car-sharing, car-swapping and for temporary use so that cover is in
place for the time when and if insurance is needed.
"Our research has been driven by the insurance market's appetite
for greater insights around a NAP data enrichment solution. We are
working with insurance providers to explore how shared data on NAP
policies could be used to refine the design, risk assessment and
distribution of these solutions to benefit consumers and insurance
providers alike."
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 and analytics and decision tools for
professional and business customers. For more information, please
visit www.risk.lexisnexis.co.uk and www.relx.com.
Media Contacts:
Alison
Reeson, Clare Watson,
Parm Heer at HSL
0208 977 9132, 07876 597466
lnrs@harrisonsadler.com
Annalysce Baker
Manager, Global Communications
Insurance and Connected Car
LexisNexis Risk Solutions
+1.678.436.1579
Annalysce.Baker@lexisnexisrisk.com
i https://www.forbes.com/uk/advisor/car-insurance/driven-off-the-road/
ii LexisNexis Risk Solutions partnered with
Consumer Intelligence to survey more than 2,000 UK consumers, to
assess levels of awareness and understanding of different types of
NAP, reasons for their use; and consumers' experiences when
applying for and using these products, June
2022.
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