Life Insurers focus on better risk segmentation through data, analytics and technology
A report by Indiaforensic estimates that fraud alone costs the insurance industry $6.25bn per year or around 9% of premiumsi. LexisNexis Intelligence Exchange will allow insurers to better mitigate risk by checking an insurance proposal against records in the database to confirm underwriting facts and check for misrepresentations, non-disclosures, policy stacking, declinations, surrenders, lapses and claims histories. Insurers can also review an incoming claim against claims made with other insurers for inconsistencies to ensure faster settlement of genuine claims and coordinated investigations of suspicious claims.
LexisNexis Intelligence Exchange is hosted in India as part of the Company’s business strategy. LexisNexis has been working with Indian life insurers for the past 18 months and has designed the platform to be scalable and customisable to address the growing insurance market and evolving insurer needs. LexisNexis Intelligence Exchange will also help insurers assess seller performance, patterns of mis-selling, and churning, and identify fraudulent linkages between various stakeholders. The platform will also be a gateway to other data sources that help with KYC / AML verification, and credit history verification as such data sources become available from LexisNexis.
Speaking on the occasion, Shivakumar Shankar, MD, LexisNexis Risk Solutions, said, “The Life Insurance industry continues to be challenged: consumers are seeking to transact more quickly and easily, while rising fraud and poor risk selection are damaging business profitability. Through LexisNexis Intelligence Exchange, LexisNexis is providing a new method to survive and sustain these challenges.”
“Mis-representation or non-disclosure of facts is a serious issue impacting insurance profitability. In addition, the nexus between entities like consumers and agent and the lack of data is a major challenge that insurers face on a daily basis, leading to the acceptance of risk that is sub-standard and payment of claims that are fraudulent,” said Shivakumar.
LexisNexis Intelligence Exchange leverages high-performance computing cluster technology called HPCC Systems®, which is one of the most advanced big data processing technologies available, using proprietary linking algorithms to improve match rates, with a long and successful track record of use in high volume and high response production environments. Data and value-added analytics from LexisNexis are delivered to insurers through a single point of entry to provide attributes, scores and predictions about consumer conversion, claims, renewals and lapses, customised to insurers’ decisions and systems.
In addition to a long history of building and maintaining contributory databases for industry benefit, the company has been delivering data and analytics solutions to global insurers for over 30 years. LexisNexis insurance customers include all of U.S. Life and P&C insurers as well as 95% of the U.K. insurance market.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions (http://www.lexisnexis.com/risk/) is a leader in providing essential information that helps customers across industries and government predict, assess and manage risk. Combining cutting-edge technology, unique data and advanced analytics, LexisNexis Risk Solutions provides products and services that address evolving client needs in the risk sector while upholding the highest standards of security and privacy. LexisNexis Risk Solutions is part of RELX Group plc, a world-leading provider of information solutions for professional customers across industries.
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