LexisNexis launches Telematics OnDemand
LexisNexis Risk Solutions , launched LexisNexis Telematics OnDemand, a solution that integrates telematics-based driving behavior data into insurer rating and underwriting workflows. With consent previously provided, the solution enables US 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 insights provided by telematics-based driving behavior data.
Telematics OnDemand is built to collect and deliver normalized telematics data from US 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. 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.” – Kumi Walker, chief business development & strategy officer at Root.
“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, US insurance carriers offered enrollment discounts meant to excite consumers without knowing the full risk to their books of business. 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.” – Adam Hudson, vice president and general manager, U.S. Connected Car, LexisNexis Risk Solutions.