LexisNexis: Delivering Active Risk Management Insights

CIO VendorBill Madison, CEO, Insurance Inlike other industries, in the insurance arena, catastrophic disasters like a tempest destroying insured residential buildings, a policyholder meeting with an unfortunate accident, or the outbreak of an abysmal epidemic often play a critical role. Such events always keep global insurance organizations on their toes, enabling them to focus not only on their offerings but to calculate liability and risks factors as well. “To effectively manage risk and seize opportunities within every challenge, institutions must consider a variety of business dimensions,” says Bill Madison, CEO of Insurance division at LexisNexis. “This includes assessing financial risks associated with underwriting processes and building closer relationships with customers.” Forging ahead with this notion, LexisNexis has developed data analytic solutions, which help insurance organizations to assess, predict, and manage risk. Global insurance companies can leverage LexisNexis’s solutions without infringing on any regulatory laws as all the products are compliant towards the different standards enacted by different countries.

Actionable Insights and Intelligence

It is impossible to look into the future. However, with the actionable data and analytics engine at one's disposal, one can surely gain a foresight to predict things wisely. LexisNexis Active Insights, a data analytic platform, contemplates the behavioral changes of the policyholders that can drastically affect insurance needs. It is done by keeping level with the customer’s identity and monitoring their life events, and alerting insurers about the risks that can manifest. This approach allows companies to proactively address and manage the customer relationship before any unwanted change negatively impacts the business.

LexisNexis Active Insights covers various dimensions of risk management. It includes fortification of relationships with end users, which also leads to increasing customer retention rates. The data that Active Insights extracts helps insurers to have an in-depth detail of their end users. For underwriting processes, organizations can leverage this information to underline the risks associated with a customer’s policy. To keep the risks at bay, companies can make arrangements to carry out conversations with the insured, that helps in mitigating risk of attrition. This type of targeted outreach, based on events and insights that truly matter, can nurture a positive brand experience and increase customer loyalty, while highlighting the value and risk associated with every customer.

During conversation with the insured, insurers can also address their coverage needs or discuss additional coverage and policies.

With our solutions, underwriters are able to quickly obtain accurate, verified information to make smart and well-informed decisions

It further deepens the existing relationships and assists insurers to grow their book of business at a fraction of typical acquisition costs. Active Insights can produce different types of data sets that not only enable organizations to assess the current circumstances of customers but also allow them to prioritize which clients to engage and what resources to leverage.

Effortless Underwriting

Today, life insurers are finding themselves at stake due to accelerated convergence and competition in a number of areas. At the root of this growing complexity is the lack of speed and relative inflexibility of the traditional life insurance underwriting process. In addition, “life insurance policy underwriting can take as long as four to six weeks, resulting in significant dropout rates among applicants who are not willing to go through such a lengthy procedure,”says Madison. To deal with this issue, LexisNexis delivers two solutions, Current Carrier Life and Life Electronic Inspection Report (EIR), which can streamline applications and inspection procedures for the life insurance market. “With our solutions, underwriters are able to quickly obtain accurate, verified information to make smart, well-informed decisions.” Current Carrier Life and Life EIR capabilities can significantly help insurers strategically leverage large amounts of existing applicant data to improve business processes and decisions.

The innovative products create a new benchmark for speed and agility by providing the ability to independently confirm information of the insured and reduce the time and costs associated with life insurance underwriting. Current Carrier Life is actually a contributory database that gives insurance companies a whole new set of tools to quickly and accurately define risk profiles of proposed customers.

It provides information on both in force policies and applications, along with information on lapsed, declined, or surrendered policies. It also provides customers with alerts that allow users to detect fraud and potential material misrepresentation. Life EIR, on the other hand, is more like a set of extra arms that helps insurers to pick public records databases, giving companies almost instant availability to report information. The result is higher productivity, fewer delays, and lower costs. The product also streamlines the underwriting process by offering users access to robust bundled reports. Where traditional reporting required users to pay for each report individually, Life EIR delivers significant savings and higher margins.

"By providing content rich data, in a fast and efficient manner, we enable customers to substantially optimize their business model"

“Recent studies suggest that almost two-thirds of the applications received are inaccurate or incomplete, and in a chaotic order,” says Madison. Poor data quality is one of the greatest inhibitors to effective underwriting which these new products directly address. “By providing content rich data, in a fast and efficient manner, we enable customers to substantially optimize their business model.”

Keeping Frauds at Bay

At LexisNexis, a customer’s success is always kept as the epicenter of every approach and strategic discussions. Because of this, various insurance companies have chosen LexisNexis as their partner to mitigate risks and associated challenges, and solve their needs. One such company is Erie Insurance—a Pennsylvania based multi-line insurance company—that has been employing LexisNexis’s solutions such as FraudFocus to proactively combat several types of fraud. FraudFocus is known for its unique capability to decipher fraudulent events in quick successions. FraudFocus also automates and standardizes the fraud detection process, providing a new level of consistency and efficiency when searching for potential fraud. Due to this, and many other benefits, Erie Insurance implemented FraudFocus to deal with fraud cases. The client was looking to receive an appropriate number of alerts, or notifying events, to make efficient use of both data and time. Erie Insurance also wanted to employ customer-specific customization that takes into account factors such as their underwriting portfolio and tolerance for risk. With FraudFocus, the customer was able to have claims of all sizes and types, and build a strong foundation for investigation and pursuit of fraud. Adjusters are given the liberty to know they are “looking at the right claims” with sound prioritization, facilitating efficient workflow and optimized resources. Erie Insurance also reduces the instances of paid claims that are often found to be fraudulent, giving rise to a situation in which the money is recovered only three percent of the time, according to Erie Insurance. The forte of LexisNexis is not just limited to insurance, but spans across several other industries as well such as government, healthcare, hospitality and travel, retail, and utilities. In these industries also the company has made symphonies through the orchestral work of its products. Although it is not just the products that have left these industries captivated, LexisNexis’s motivated and resilient employees, the collaborative culture, and methodologies also make the company well acclaimed. In the days to come, LexisNexis is looking forward to enhance the capabilities of its solutions and build more partnerships with reliable companies to tackle the exigencies of risk management.

- Arun Kant
    March 10, 2016