LexisNexis® Risk Solutions has officially announced the launch of LexisNexis® Location Intelligence for Commercial, which happens to be a next-generation commercial property risk assessment solution, capable of conceiving more precise, automated, and predictive modeling power across U.S. commercial insurance sector at underwriting and renewal.
To understand the significance of such a development, we must take into account how severe weather events, over the recent past, have went on to orchestrate 65% of all U.S. property losses. This, like you can guess, has forced commercial insurers to face significant challenges in the context of underwriting, pricing and portfolio management.
Against that, Location Intelligence for Commercial makes it possible for commercial insurance carriers to better assess, and at the same time, spotlight property risks that are highly indicative of loss propensity. More on the same would reveal how this innovation practices a holistic approach which effectively packages industry loss data related to future loss, weather forensics, and granular property characteristics, into a suite of predictive modeling risk scores and supporting attributes.
Once that step is duly completed, the relevant mechanism transitions to adding proprietary claims information and neural network-driven risk propensity models, all for the purpose of delivering actionable, future-focused insights directly into commercial insurance carrier workflows for a more detailed and accurate view of commercial property risk.
“We understand that insurance underpins the economy, and commercial property insurers need to be able to confidently manage risk and improve profitability as they look to support the nation’s small business foundation,” said. David Zona, senior vice president, commercial insurance, LexisNexis Risk Solutions. “With year-over-year losses and the growing volatility of weather patterns, insurance carriers need more than historical data to win the day. They need forward-looking, actionable insights to better identify underwriting risk and improve profitability so they can continue helping their business customers thrive.”
Talk about the whole value proposition on a slightly deeper level, we begin from the promise of unmatched predictive modeling lift. This translates to how the given technology can deliver over 20 times the lift compared to traditional loss propensity models. The idea here is to help enabling commercial insurance carriers better pinpoint the 10% of properties likely to generate 34% of weather-related losses in the coming year.
Next up, we have the availability of multi-source intelligence, something which comes in handy to synthesize aerial imagery, LexisNexis Risk Solutions comprehensive claims data, weather events, and proprietary information for reaching upon a more complete, accurate risk profile far better than what imagery alone can provide.
Another detail worth a mention is rooted in the potential for industry-leading automation and efficiency. In essence, LexisNexis integrates seamlessly into commercial insurance underwriting and renewal workflows, supporting straight-through processing and enabling more efficient, targeted risk control strategies.
Rounding up highlights would be an aspect committed to transparency and communication. From a practical standpoint, Location Intelligence for Commercial brings forth more transparent, multi-source approach when it comes to risk assessment, thus positioning commercial insurance carriers to more easily adapt to evolving regulatory requirements.
“LexisNexis Location Intelligence represents a new standard for commercial property risk assessment that helps give insurers actionable intelligence they need for a fuller and more granular view of risk coupled with workflow automation they can actually leverage,” said Zona. “With Location Intelligence, they can better assess risk, such as which 10% of the properties in their book could generate a third of their property losses. This can put them in a unique position to be a customer service leader, proactively working with their customers on risk mitigation and resilience efforts.”
