Insurance and technology consultants WTW and UK-based vehicle risk data specialist Thatcham Research have announced a partnership to combine their data and analytical capabilities to deliver a more comprehensive understanding of the impact advanced vehicle technologies are having on claims risk.
With even mass market family hatchbacks featuring advanced driver assistance systems (ADAS), expensive headlights and keyless and connectivity systems, the complexity of risk assessment for insurers is increasing. Claims leaders, underwriters, pricing teams, reserving actuaries and senior management need to understand the extent to which these novel risk factors are driving new claims trends. For example, which vehicle features represent the highest claims risk, higher inflationary costs or actual savings, such as from reduced injury frequency and severity.
Containing data for over 50,000 vehicle variants, the Thatcham Research data set Variant Code provides data granularity on the growing variety of standard and optional features in UK vehicles. Meanwhile, WTW’s Claim Metrics platform provides deep analysis of claims activity in the personal lines insurance market.
The tie-up will see Variant Code’s vehicle specificity combine with Claim Metrics’ data and analytics to give insurers far deeper, richer insights of emerging trends in claims risks at a granular level in terms of claims characteristics, geography and vehicle type.
Daniel Payne, chief digital officer at Thatcham Research, explained, “Vehicles are set to change more in the next five years than they have in the last 50. Combining the uniquely granular data and sophisticated analytics capabilities of Variant Code and Claim Metrics is a win-win for insurers. Empowered by new levels of insight, claims, underwriting and pricing teams are able to make more informed decisions, and price according to the specific features of a particular model variant. This capability is fundamental to maintaining competitive advantage, as vehicles evolve and technologies that were once the preserve of high-end models increasingly become available at entry level.”