New U.S. Telematics Scoring Model Achieves 79% Lift Above Standard Rating Factors, Testing Available via LexisNexis Telematics OnDemand
Telematics OnDemand will be the first LexisNexis® Telematics Exchange product to offer scores using the new Drive Metrics telematics scoring model which leverages analytics applied to driving behavior data. The resulting scores can help carriers deliver a more accurate risk assessment of driving behavior data, both at point of quote and renewal. Most importantly, it helps carriers with no prior experience with telematics to quickly leverage a large volume of driving behavior data which is accrued from more than 29 billion driving miles and hundreds of thousands of recorded claims.1
This new scoring model is compatible with carrier-specific rating plans and delivers a 79% additional lift above standard rating factors, with the potential to increase future performance of the model even further as additional driving behavior attributes are included. The separation power of this scoring model is also very high with an 8.7x lift between top and bottom deciles in terms of claim frequency and performs strongly across coverage types to offer differentiated claim relativities and recommended discounts.2 While this new scoring model demonstrates strong performance, the data scientists at
With more individuals paying attention to their current driving habits or decrease in driving in some cases, the time is right to release this newest generation of telematics driving behavior models. In a
"Adding Drive Metrics to our Telematics OnDemand solution represents the next stage in the UBI evolution," said
While insurance carriers are poised to see substantial improvements in predicting and analyzing driving risk, automakers can also benefit from the added scoring model to Telematics OnDemand due to greater demand and usage of telematics data sourced from automakers by a broader set of insurers and consumers.
"With more than 30 years as a trusted custodian of data for insurance, having the ability to provide greater transparency and accuracy is critical," said Hudson. "The latest advances among proprietary linking technology and advanced analytics capabilities enable us to link a driver to a vehicle and monitor the legitimacy of that person's connection to the vehicle, ultimately allowing for a more trusted and personalized experience where they can benefit from their data."
For more information about the new Drive Metrics telematics scoring model and the associated eBook, click here.
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
1 LexisNexis Risk Solutions 2021 Driving Score Whitepaper
2 LexisNexis Risk Solutions 2021 Driving Score Whitepaper
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