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LexisNexis Risk Solutions has announced a new data score that enables insurers to more accurately rate and underwrite fire responses.
The new LexisNexis Fire and Disaster Response Score helps property insurers improve profitability, streamline processes, and reduce expenses by utilizing geographic and fire-specific data sources.
“Fire risk in a community is frequently rated using less precise methods of investigation, leaving insurers vulnerable to losses through inaccurate rates,” said LexisNexis Risk Solutions senior director of home insurance George Hosfield. “The LexisNexis Fire and Disaster Response Score uses advanced predictive modeling techniques and data assets from a host of non-traditional sources to deliver a more accurate local fire response score for underwriting.”
LexisNexis Fire and Disaster Response Score incorporates advanced geospatial technology, historic fire department responses and loss data, true drive times from responding fire stations, and other data sources to more precisely model fire risks. It also determines the risk level at the location area.
The solution comes as a recent Home Trends Report by LexisNexis found that fire loss cost has increased nearly 22% year-over-year in 2017.
“Pricing fire risks correctly is critical for an insurer’s profitability, especially since fire losses tend to be so severe,” added Hosfield. “Based on research from LexisNexis Risk Solutions, 77% of homeowners’ compensation for fire losses is for claims exceeding $100,000. The LexisNexis Fire and Disaster Response Score allows insurers to identify new opportunities for profitable growth while discovering where undesirable levels of risk reside.”
