LexisNexis Risk Solutions: COVID-19’s impact on insurance
Answering six questions, Jeffrey Skelton, MD for Europe, LexisNexis Risk Solutions, Insurance discusses with Business Chief EMEA the current landscape and future trends in 2021 when it comes to insurance.
Could you talk me through the current landscape for your industry as we count down the final weeks of 2020?
The insurance market is undergoing a huge transformation driven by changes in customer needs and expectations, the growth in data sources to understand risk, ongoing advances in vehicle technology, as well as the very real threat of climate change.
This transformation was happening prior to the pandemic and in some respects, COVID-19 has only accelerated the process.
There is a big focus on digitisation, personalisation and innovation, with data as the backbone to deliver the types of insurance products and services consumers and businesses want and will value to suit their changing lifestyles.
How have you seen your industry evolve this year?
We have seen a real hunger for data to better predict and understand risk, not just for pricing but to support the whole customer journey. In commercial property and household insurance, the use of mapping tools and ‘live’ data direct from the Environment Agency are putting insurance providers in a much stronger position to help mitigate environmental risks.
In motor insurance, policy history and quote data is helping the market price more accurately and identify fraud risk to help keep costs down.
But perhaps the biggest evolution is in connected car and vehicle build data to help support more personalised insurance based on the safety features of the car as well as how it is driven. The work to bring this data into the insurance ecosystem has gathered real momentum in 2020.
What technology and/or approaches have you seen emerge in the industry due to COVID-19? How do these compare to before the outbreak?
The way we live and work has changed dramatically in the past year, consumers are under different pressures, risks have altered and insurance providers are keen to use data that will help them understand those changing risks and treat customers fairly. Responding to that need, we’re just about to launch a new solution to help the market to factor for changes in motor policies such as cancellations and gaps in cover that were a direct consequence of the pandemic.
What are your predictions for the industry in 2021 and beyond?
Innovation from insurtechs and insurer/insurtech collaborations will gather pace while data from the IoT, connected cars and from shared claims contributory databases will deliver new insights that may help mitigate risks and take the pain from claims. I also think there will be increasing focus on achieving a single customer view – knowing the full history of the relationship with a customer across all parts of the business.
What are the current challenges in the industry?
The insurance market faces multiple challenges - increasing regulation, Brexit, changes in consumer behaviours, the threat of extreme weather events, legal challenges over business interruption cover as well as the ever-constant threat of fraud to name a few.
Could you talk me through your career journey and tell me a bit about the company that you work for?
I have worked for LexisNexis® Risk Solutions, a leading data, analytics and technology provider for over 18 years – 17 of which in the US, latterly as SVP of Client Engagement, Insurance. In 2019, I moved to the UK to head our UK and Ireland insurance business and now I am responsible for our insurance business across Europe. Prior to joining LexisNexis, I was a lobbyist for various private companies in the Financial Services sector.
LexisNexis Risk Solutions is part of the fastest growing segment of RELX (FTSE: RELX).