In a development set to shape the future provision of motor insurance in Europe, insurance providers and automotive OEMs across the region can now access the LexisNexis Telematics Exchange, a central platform of driving and connected car data delivering a consistent view of risk and driver scores regardless of the data source.
To complement this launch and support market growth, LexisNexis Risk Solutions is also creating a Pan-European Insurance Panel, in which six of the top ten world’s largest insurers have confirmed interest in participating. Both developments will help accelerate the growth of connected car enabled Usage Based Insurance (UBI). For the consumer, it will also help to ensure more choice, fairer pricing, and improved data security and portability as the automotive and insurance industries take the first steps to delivering UBI to a mass market of motorists.
The introduction of the LexisNexis Telematics Exchange in Europe will add driving data collected direct from OEMs, in addition to the established aftermarket devices and third-party data. Driving data is normalised and attributes created to provide high-quality and enriched scoring data to be ingested as part of insurers’ and OEMs’ UBI programmes. It means that for the first time, insurers and OEMs will be able to cost effectively access the whole of the insurance market at point of quote, while still enabling them to run their existing one-to-one UBI programmes.
As well as running partnership programmes, OEMs can now integrate into the LexisNexis Telematics Exchange to develop UBI, First Notice of Loss (FNOL), recall programmes and other connected car use cases for both their drivers and the Pan-European Insurance Panel.
Paul Stacy, Director of Telematics and OEM, LexisNexis Risk Solutions said: “There has been an explosion in devices and technology to collect driving and car data – and an even bigger explosion in the data coming from these sources. Both insurers and OEMs needed a way to share data and to achieve a consistent view of risk, regardless of the data collection method used – it could be a connected car, a black box, or a 12V aftermarket device. As UBI becomes more commonplace, the need to bring confidence and consistency to scoring becomes more urgent. The development of the LexisNexis Telematics Exchange came out of this need as an extension of our big data platform, HPCC Systems, to deliver data normalisation and big data management in aftermarket behavioural data and vehicle data.”
“It provides both the insurance and automotive market with the technology platform, resource, and scale to assist in the development of new products for better consumer engagement. For the consumer, it enables the data portability and choice as prescribed under new GDPR regulations while enabling far greater use of self-selection alongside traditional historical and real-time driver behaviour analysis and driver scoring.”
Rutger Van Der Wall, Vice President of Global Products, Insurance, LexisNexis Risk Solutions, added: “The connected car will become the foundation for automotive insurance products but the cost for all OEMs to integrate with all the insurers is a multi-billion euro industry-wide problem. To achieve a similar outcome as the LexisNexis Telematics Exchange – over 40 vehicle brands from circa 20 OEMs would need to be connected with over 1,000 European insurers and brokers – some 20,000 connections. It’s simply cost prohibitive for the industry.”
“Utilising our experience in the automotive insurance, credit and financial markets, LexisNexis Risk Solutions has invested in, and pre-built this service. The customer is king – the exchange solves the industry-wide problem of providing the consumer with great products at the right price without limiting choice.”