Pricing and underwriting in the UK motor market have been data-driven for years. Motor claims handling, in many cases, has not. That gap is now drawing regulatory attention – and commercial investment.
LexisNexis Risk Solutions announced in June 2026 that it is launching three data intelligence tools for motor claims, accessible via a single API. The timing reflects a market under pressure from rising repair costs, an approaching loss cycle, and a regulator that has named claims efficiency as a 2026 priority.
The Financial Conduct Authority (FCA) stated in its first Regulatory Priorities report for the insurance sector, published in February 2026, that too many people have poor claims experiences.
The regulator said it would actively monitor consumer outcomes in claims handling over the next 12 months. It has communicated a willingness to intervene where standards fall short, including through enforcement action.
The Motor Insurance Taskforce published its final report in December 2025. Its members included the FCA, HM Treasury, the Competition and Markets Authority (CMA), and the Association of British Insurers (ABI). The FCA committed to working with the ABI and firms on improving claims efficiency and cost control, without adversely affecting customer outcomes.
The taskforce identified three operational cost drivers in motor claims:
replacement vehicle and credit hire costs
longer repair lead times and higher parts costs
complexities around bodily injury claims
For brokers, the regulatory direction matters. Claims handling quality is now a Consumer Duty issue. Insurers that cannot demonstrate prompt, fair, and consistent outcomes face supervisory scrutiny.
The ABI reported that UK motor insurers paid out £2.9 billion in claims in the first quarter of 2026. Vehicle repair costs totalled £1.9 billion, up 3% on the previous quarter.
The average accidental damage claim rose to £3,699, up 8% on the quarter. Integrated sensors and cameras are making repairs more specialised and costly, the ABI noted.
EY forecasts the UK motor market will post a net combined ratio of 111% in 2026. That means the sector paying out £1.11 in claims and expenses for every £1 collected in premium.
As Insurance Business UK’s analysis of motor claims trends and pricing pressure confirmed, rising repair complexity and vehicle technology costs are already reshaping insurer strategy across both underwriting and claims.
In that environment, errors made at First Notification of Loss (FNOL) carry a disproportionate cost. Incomplete third-party contact details, incorrect vehicle data, and undetected risk indicators at FNOL generate rework, delay triage, and drive unnecessary referrals into an already pressurised supply chain.
"While pricing and underwriting have become increasingly data-driven, claims handling often still relies on fragmented, reactive processes," said Tom Clarke, motor strategy director at LexisNexis Risk Solutions.
"This is a growing problem in motor insurance as claim complexity rises, customer expectations increase and operational pressures intensify."
LexisNexis Risk Solutions is launching three products via a single API integration.
LexisNexis Claims Datafill pre-populates third-party contact details and claimant information at FNOL. It reduces manual entry and improves routing accuracy from first contact.
LexisNexis Windscreen Check provides vehicle identification number (VIN)-level data on windscreen specifications and Advanced Driver Assistance Systems (ADAS) fitment. ADAS-equipped vehicles require specialist sensor recalibration after even minor glass repairs. Accurate triage at notification reduces the risk of mispriced or contested windscreen claims – an area of growing exposure across the market.
LexisNexis Vehicle Insights for Claims delivers real-time data on make, model, mileage, MOT status, and valuation at FNOL. It is designed to support consistent vehicle valuation decisions from first contact, rather than downstream where errors become harder and more expensive to correct.
Carla McDonald, director of product management at LexisNexis Risk Solutions, said the first minutes of a claim shape outcomes well beyond the initial exchange. "The quality of decision-making in the first few minutes of a claim shapes everything: triage, indemnity spend, customer experience and loss ratios," McDonald said.
"By bringing richer, more connected data into the claims journey earlier, we can help insurance providers and their partners make more informed decisions from the outset."
LexisNexis Precision Claims, a market-wide contributory claims database, extended granular claims data across motor and home lines from 2022. The June 2026 tools take a different focus. They move the data layer into the live claims moment rather than the risk assessment stage.
The single API model is designed not only for insurers and managing general agents (MGAs). It also covers claims management companies, repair networks, credit hire organisations, and salvage operators.
That reach is commercially relevant. The Motor Insurance Taskforce's final report identified credit hire costs and referral practices as cost drivers. Fragmentation of claims data across supply chain partners was a factor the taskforce highlighted.
For brokers managing commercial fleets or personal lines motor books, the practical question is whether their insurer partners adopt these tools. Faster, less disputed claims settlements for clients would be the measurable outcome.
Insurance Business UK’s coverage of the UK motor insurance market in H1 2025 noted that data-driven pricing, risk selection, and fraud detection were already cited by market participants as essential for navigating the shifting environment.
The extension of that logic into claims handling – now mandated by regulators, not just commercially attractive – puts this launch in step with market direction.
