(Photo credit: Susan Mondor Reedich.)
LexisNexis Risk Solutions, the Atlanta-based leading provider of data and analytics to the insurance industry, has announced the availability of LexisNexis Territory Index, a location-based modeling solution designed to enable home insurers to better recognize the impact of individual non-catastrophe perils.
“Our data has shown that loss costs have increased 156 percent over six years for water losses caused by weather events alone,” comments George Hosfield, Senior Director, Home Insurance, LexisNexis Risk Solutions. “With insurers challenged by profitability and volatile results, Territory Index helps them gain a better understanding of by-peril risks at a very granular level.”
Territory Index delivers a series of loss cost scores built using a large amount of industry loss experience to more accurately price and develop homeowners’ territories, the vendor reports.
Using the vendor’s Territory Index, insurers are able to the following according to LexisNexis:
- More fully understand the area around a home with specific local level historical data
- Elevate the sophistication of an existing program by developing more precise territory rates
- Benchmark their portfolio to countrywide industry peril risk indices
- Prepare to enter a new state or geography
- Utilize peril components to better understand peril trends
- Retain customers at the appropriate price point
Territory Index cleanses, normalizes and links disparate data sets and leverages comprehensive loss data, the vendor adds.