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Admiral to use ADAS data in pricing through LexisNexis Vehicle Build

Admiral to use ADAS data in pricing through LexisNexis Vehicle Build

Admiral, the U.K.’s largest motor insurer[i], is set to use Advanced Driver Assistance Systems[ii] (ADAS) data in its pricing and underwritingthrough LexisNexis® Vehicle Build, developed by data, analytics and technology provider,LexisNexis® Risk Solutions.

The culmination of several years research and development, LexisNexis Vehicle Build isa new solution to help insurance providers understand and evaluate the specific standard and optional ADASfitted to a vehicle at a Vehicle Identification Number (VIN) level, to help improve lossand expense ratios and support competitive pricing.

The data scientists at LexisNexis Risk Solutions analysed more than 2.7million vehicles and have been testing the solution with motor insurance providers in the U.K. and Europe over the past year. This analysis hasrevealed theincreased penetration of ADAS in vehicles in the U.K. and the corresponding need for insurance providers to factor for ADAS in pricing. LexisNexis found that on average, there are eightsafety features per vehicle in the U.K. car parc, making the U.K among the leaders in the adoption of automated vehicle safety systems across Europe.

Mark Gabriel, head of van insurance and motor product for Admiral said: “The more we can understand about the specific ADAS fitments to the car, the more accurate our pricing. This is not only fairer for our customers who have invested in ADAS equipped vehicles, but having this insight through LexisNexis Vehicle Build also helps prepare for the future where cars will have increasing levels of autonomy.”

Within LexisNexis Vehicle Build, there are a set of core ADAS featuresthat have been found to deliver a reduction in claims frequency. 69% of cars analysed in Europe by LexisNexis Risk Solutionswere equipped with a core safety feature and are therefore less likely to have an insurance claim.As technology develops, this percentage is expected to increase. Data from The Society of Motor Manufacturers and Traders[iii]showseightin 10 new cars are currently available with driver assistance systems.

Carla McDonald, seniormanager, motor insurance, U.K. and Ireland, at LexisNexis Risk Solutions, said: “Having a key industry partner like Admiral on board cements what we knew all along - that this type of enrichment will be business critical as ADAS becomes more prevalent in the driving behaviour of newly manufactured vehicles.The crucial benefit of LexisNexis Vehicle Build is the ability to provide ADAS fitment information on not only standard but also optional features at a VIN-level, which have been normalised by LexisNexis across automakers in the market. A good portion of these features are selected extras, and trim-level information as an alternative simply can’t tell you if that optional feature is on the vehicle or not.

“ADAS features exist to avoid or reduce the seriousness of collisions, so as the features become more common,the dynamics of claims will change. For insurance providerslike Admiral,this aligns to their business objectives, helping to improve their bottom line. Using our classification of ADAS from millions of lines of data, motor insurance providers can understand and use the features of a car and their relative performance to improve their pricing accuracy.”

*Article Source www.LexisNexis


[ii]Advanced driver-assistance systems, are electronic systems that help the vehicle driver while driving or during parking to support safety.


*Article Source


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