Thatcham selects LexisNexis to deliver risk intelligence to UK insurers

In a major development for the UK insurance industry, the advanced analytics and technology provider LexisNexis Risk Solutions (LRS) has secured a first-of-its-kind strategic relationship with Thatcham Research, the insurer-funded automotive risk intelligence company.

The strategic relationship is expected to transform the accessibility, consistency and analytical power of Thatcham Vehicle Risk Data (VRD) which is used to assign an industry-standard ABI Code and Group Rating score to vehicles. The VRD is integral to how insurers assess and rate risk for all wheels-based insurance products.

The news comes as the Association of British Insurers (ABI), in close collaboration with Thatcham Research, has released its motor insurance affordability roadmap. This includes recommendations to increase visibility of the Group Rating system, which would help consumers make more informed choices on their motor insurance based on the vehicle they choose. This collaboration will help support these actions and recommendations, making it easier for insurance providers to be transparent with customers over vehicle ratings as car safety technology evolves.

The first element of the agreement focuses on streamlining and automating access to the VRD. LRS has the widest data distribution network into the UK insurance sector, streamlining data directly into insurers, brokers, managing general agents, insurtechs, software houses and third-party data providers, to support billions of insurance quotes every month. LRS will become the sole distributor of Thatcham VRD to the UK and ROI insurance market.

Leveraging this unique network, insurance providers will be able to access Thatcham VRD in real time for the first time, alongside additional public, third party and proprietary data sources, as part of a streamlined risk assessment and decisioning process, via the LexisNexis Informed Quotes platform.

The second element of the agreement focuses on consistent matching of Thatcham VRD to vehicle registrations. As part of the strategic relationship, LRS will use its extensive linking and data normalisation expertise to match vehicles to Thatcham VRD (incorporating the Group Rating, Variant Code and ABI Code datasets). This will create greater consistency for insurance providers by delivering more granular data to support the identification of risk-affecting vehicle features in the quoting process regardless of the quoting platform.

The third element of the agreement will focus on uncovering new, predictive vehicle intelligence. Leveraging its long track record of building new and innovative vehicle data products, LRS will collaborate with Thatcham Research in exploring the possibility to unlock significant intelligence on vehicles that does not exist today.

James Burton, managing director UK and Ireland insurance, LexisNexis Risk Solutions, said: “We pride ourselves on being experts in insurance, and our vehicle strategy is both consistent with and complementary to the Thatcham Research vision. This strategy makes LexisNexis Risk Solutions well-placed to unlock the potential in the Thatcham VRD product, creating transformational insights for motor insurance providers.”

Jonathan Hewett, chief executive of Thatcham Research, said: “This exclusive relationship with LexisNexis Risk Solutions will allow Thatcham Research to focus efforts on research, testing and training, knowing that the insights we offer that are essential to how insurance providers derive premiums and assess risk will be managed by a trusted partner to the industry. We are pleased to be able to offer insurance providers greater access to vital data which may not have been accessible previously. The combination of Thatcham Research and LexisNexis Risk Solutions assets and intelligence is compelling, providing an exciting roadmap for new services and insights that will improve the overall motor insurance customer experience.”