Milestone Coincides with 20th Anniversary of Renowned U.S. Policy Information Contributory Database, LexisNexis Current Carrier
LexisNexis® Risk Solutions, a leading provider of data and analytics for the insurance industry, is celebrating the 35th anniversary of LexisNexis® C.L.U.E.® Auto (Comprehensive Loss Underwriting Exchange), the auto insurance industry’s most comprehensive claims history database. LexisNexis Risk Solutions also celebrates the 20th anniversary of LexisNexis® Current Carrier® Auto, which has grown to include more than 96% of auto insurance policy data to help insurers validate underwriting information and improve customer experience.
C.L.U.E. Auto helps enable U.S. insurers to quickly and seamlessly access claims information to expedite the underwriting process, help predict the potential for future claims, and through continued innovation, help discover even more important claims that typically go unnoticed by other solutions. These data analytics insights are even more critical in today’s market as consumers are increasingly shopping their auto insurance and insurers’ profitability is challenged by increasing claims severity and other economic factors.
Prior to C.L.U.E. Auto’s launch in 1987, claims history was typically incomplete and difficult to obtain. This resulted in inefficiencies and information gaps that did not allow for proper pricing to the risk. C.L.U.E. Auto, which can be seamlessly integrated into an insurer’s workflow, and its contributed data have brought to the market a 360-degree view that helps U.S. insurers understand their customers in a more comprehensive and actionable manner, giving them the ability to offer the products that best meet their customers’ needs and deliver a personalized experience. Additionally, by combining contributed information with other data sources, such as life events or driver activity, insurers can focus on customer retention and profitability.
“The use of contributory data helps lead to lower rates for most consumers,” said Bill Madison, CEO, Insurance, LexisNexis Risk Solutions. “By providing carriers with insights into an applicant’s previous coverage and loss history, contributory databases help enable more accurate rating and, for many consumers, lower rates—not just with their current carrier but also with others, should they choose to shop around.”
C.L.U.E. Auto includes up to seven years of personal automobile loss data from more than 99% of the U.S. auto insurance market to help insurers underwrite with greater speed and accuracy, better segment and price risk, reduce expenses and improve customer service for consumers shopping for insurance. It uses the LexisNexis Risk Solutions unique identifier LexID® and proprietary linking technology for a more comprehensive and accurate view by uniquely identifying consumers so that insurers can underwrite with even more confidence and offer more customized premiums to the individual or household. With these tools, insurers can identify and organize information quickly to help make more informed and immediate business decisions.
C.L.U.E. Auto can help offer actionable insights about common underwriting use cases like:
- Adding drivers. LexisNexis Risk Solutions internal analysis shows 20.7% of added drivers, such as those undergoing life changes like getting married, have a prior claim in the past three years and 17.1% of discovered claims were designated ‘surchargeable.’
- Uncovering missed claims. Where alternative solutions have not found drivers to have claims, C.L.U.E. Auto discovered claims on nearly a third of those risks, which could result in up to 13% of those drivers having chargeable claims. C.L.U.E. Auto provides insurers with an 8% lift in match rates to better align insurance premiums to the right risk.
- Providing data-driven insights for stronger risk assessment. Traffic deaths increased in early 2022, hitting a 20-year high and painting a disturbing picture of what’s happening on today’s roadways. For a better picture of risk, insurers can leverage 1,000+ attributes to help aid with subject and policy-level underwriting.
- Highlighting the potential for insurance fraud. The increased transparency provided by contributory databases can help to mitigate fraud, an $80 billion annual drain on the insurance industry, which can ultimately be passed onto consumers in the form of higher rates.
“C.L.U.E. Auto has been a game changer for insurers since its inception 35 years ago,” said Madison. “With our commitment to investing in the solution, C.L.U.E. continues to provide value for insurers looking to minimize their blind spots and optimize their business opportunities with confidence. We are proud of its evolution in keeping up with technology insurers use today and are implementing, its accuracy, flexibility and the fact that we have continued to innovate to serve our customers’ needs. And with ever-changing legislative requirements, C.L.U.E Auto’s platform continual enhancements allow insurers to configure settings to receive information that matters.”
LexisNexis Current Carrier Auto, the auto insurance industry’s leading contributory database of existing coverage intelligence, has helped revolutionize the way insurance companies validate proof of prior insurance. By providing information electronically, Current Carrier Auto helps insurers elevate customer experience by providing insurers insights into prior coverages, household members, and vehicles to confirm information versus having to collect that information during the underwriting process. Validating underwriting information quickly and accurately has never been more crucial for insurers, as consumers think a company’s experience is as important as its productsi.
“We’re excited to celebrate this significant milestone for our Current Carrier product, which has now been helping improve workflows by automating the coverage verification process for 20 years. Insurers have made it a point to let us know that they want to truly know those consumers they are covering, and Current Carrier has been a huge part of that validation process. We look forward to continuing to help carriers strengthen their customer experience, taking friction out of the process, while helping improve the renewal underwriting process and profitability for many years to come,” said Madison.
These two solutions can help offer actionable insights to help make more informed and immediate business decisions. C.L.U.E. Auto and Current Carrier Auto data can be easily accessed and leveraged through the single platform where insurers already integrate with world-class quoting, pricing, and underwriting products from LexisNexis Risk Solutions, including National Credit File, LexisNexis® Motor Vehicle Records and LexisNexis® Telematics OnDemand.
Insurers’ customers and those who may apply for coverage also benefit from LexisNexis Risk Solutions commitment to compliance and consumer transparency through the LexisNexis® Consumer Advocacy Center, which offers more than 20 years of experience as a trusted custodian of consumer data, helping to ensure transparency, accuracy and privacy protections in alignment with legal and regulatory FCRA guidelines. Additionally, the Consumer Advocacy Center helps educate consumers on their data, respond to any questions that may arise, and will help consumers dispute information that may need to be corrected.