LexisNexis Vehicle Build Helps Insurers Understand ADAS Features, Impacts on Safety

The solution provides U.S. insurers with accurate underwriting and auto insurance risk assessment and information about specific ADAS features on a vehicle.

(Image source: Audi.)

LexisNexis Risk Solutions (New York), has announced the availability of LexisNexis Vehicle Build, a solution that provides U.S. insurance carriers with more accurate underwriting and auto insurance risk assessment and comprehensive information about the specific Advanced Driver Assistance Systems (ADAS) features equipped on a vehicle, according to a vendor statement.

The new solution was designed addresses the challenges arising from the continual development of ADAS features. Automakers sometimes release multiple features within a given model year, promoting their efficacy in reducing accidents, a LexisNexis Risk Solutions statement notes. However, these features are often offered as an optional purchase to the car buyers. In addition, each automaker creates its own unique marketing name for its features for the sake of differentiation.  This variability in naming similar features, in combination with the difficulty in determining whether those features are actually equipped on a given vehicle, creates a challenge for insurers seeking to properly price the vehicles they underwrite. LexisNexis Vehicle Build is designed to helps insurers by aggregating and normalizing more specific manufacturing data than what is currently available at the 17-digit VIN number. The solution harnesses the proprietary LexisNexis ADAS Classification System, leverages the company’s expertise in machine learning and advanced analytics, and seamlessly integrates the data into existing workflows, including LexisNexis Auto Data Prefill.

LexisNexis Risk Solutions reports that it analyzed 11 million randomly selected U.S. vehicles within model years 2014-2019, and using proprietary information compared vehicles equipped with a set of core ADAS features against vehicles without those features. LexisNexis found that ADAS equipped vehicles showed a 27 percent reduction in bodily injury claim frequency and a 19 precent reduction in property damage frequency, but also found that severity for ADAS-equipped vehicles increased only slightly.

Tanner Sheehan, AVP, Auto Insurance, LexisNexis Risk Solutions.

Vehicle-centric data is becoming more significant to U.S. insurers as cars continue to offer ADAS and other safety-related packages as add-ons to base models, according to Tanner Sheehan, AVP, Auto Insurance, LexisNexis Risk Solutions. “Consumers who select these upgrades to their vehicles have an expectation that this choice will positively impact their insurance premium,” he says. “By providing a classification of VIN-level insights with our Vehicle Build product, carriers are able to more easily evaluate the evolving vehicle technology and improve pricing segmentation.”

Evaluating Effectiveness of Safety Features

According to a recent report by the Highway Loss Data Institute (HLDI), the projected number of vehicles equipped on the road by 2023 with front crash prevention will equate to a little more than 30 percent and approximately 24 percent for automatic emergency braking (AEB). LexisNexis reports that its internal analysis shows 76 percent of 2019 models had at least one core ADAS feature, which is up significantly compared to 18 percent  in 2014 models. The growing prevalence of ADAS features underscores the importance for carriers to be able to account for features as they price policies, the vendor asserts. “Having these insights is also proving instrumental in evaluating the effectiveness of the latest vehicle safety features in reducing collisions and insurance claims,” the LexisNexis Risk Solutions statement says

As cars continue to evolve with more complicated systems, connected car data will provide additional insights into the efficacy of ADAS-equipped cars, and with its relationships in the automotive OEM space, LexisNexis Risk Solutions claims to be best positioned to leverage such data. This may include data insights into frequency of use, activation and deactivation instances and more. The vendor says that LexisNexis Vehicle Build helps insurers:

  • Gain valuable insights into vehicle-centric risk for more precise rating;
  • Easily understand the definition and purpose of any given ADAS feature and how it specifically impacts driving safety;
  • Save time through the convenience of single-source access and standardized, normalized data, regardless of automaker or model;
  • Enhance underwriting and improve the customer experience through more efficient and informed decision-making; and
  • Reduce workflow disruption through seamless integration into existing LexisNexis solutions.

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Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at AnthODonnell@IIReporter.com or (503) 936-2803.

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