With insurance becoming a great component in the auto-financing process at dealerships and credit providers, LexisNexis Risk Solutions is looking to enhance its tools to track consumers’ behavior, use of insurance and more.

Last week, LexisNexis Risk Solutions announced the launch of a new LexisNexis Drive Metrics scoring model, a next-generation telematics-based scoring model for the auto insurance industry.

According to a news release, this new scoring model will be available for testing through LexisNexis Telematics OnDemand and is designed to flow seamlessly into insurers’ existing auto insurance ratings programs to help improve segmentation, pricing risk and profitability.

The company explained Telematics OnDemand will be the first LexisNexis Telematics Exchange product to offer scores using the new Drive Metrics telematics scoring model which leverages analytics applied to driving behavior data. The resulting scores can help carriers deliver a more accurate risk assessment of driving behavior data, both at point of quote and renewal.

Most importantly, LexisNexis Risk Solutions said this solution can help carriers with no prior experience with telematics to quickly leverage a large volume of driving behavior data which is accrued from more than 29 billion driving miles and hundreds of thousands of recorded claims.

LexisNexis Risk Solutions highlighted this new scoring model is compatible with carrier-specific rating plans and can deliver a 79% additional lift above standard rating factors, with the potential to increase future performance of the model even further as additional driving behavior attributes are included.

The company also pointed out the separation power of this scoring model is high with an 8.7 times lift between top and bottom deciles in terms of claim frequency and performs strongly across coverage types to offer differentiated claim relativities and recommended discounts.

While this new scoring model demonstrates strong performance, the data scientists at LexisNexis Risk Solutions consistently evaluate, innovate and recalibrate its Drive Metrics telematics scoring models to continually deliver market-leading performance of its models and scores.

With more individuals paying attention to their current driving habits or decrease in driving in some cases, LexisNexis Risk Solutions said the time is right to release this newest generation of telematics driving behavior models.

In a LexisNexis Usage-Based Insurance (UBI) study, 88% of drivers indicated they prefer auto insurance pricing based on their actual driving habits.

Furthermore, 71% of respondents noted that telematics and driving behavior data is among the fairest ways to set a price for the insurance if they perceive a benefit.

With the new Drive Metrics scoring model, LexisNexis Risk Solutions indicated that carriers not only can focus on pricing risk more accurately to improve their books of business but also incentivize their customers who are participating in telematics data sharing programs by offering discounts based on driving behavior.

“Adding Drive Metrics to our Telematics OnDemand solution represents the next stage in the UBI evolution,” said Adam Hudson, vice president and general manager of connected car at LexisNexis Risk Solutions.

“Insurers want as much information as possible about all of the variables that comprise a true picture of risk propensity, while consumers expect a more streamlined and personalized experience for sharing their telematics data,” Hudson continued in the news release.

“The level in which we’re able to normalize telematics data and deliver actionable driving behavior insights in the form of both scores and attributes in seconds is not only an exciting prospect, but one of greater possibility as we look to extend this powerful new scoring model to other exchange-based solutions,” he went on to say.

While insurance carriers are poised to see substantial improvements in predicting and analyzing driving risk, LexisNexis Risk Solutions mentioned that automakers can also benefit from the added scoring model to Telematics OnDemand due to greater demand and usage of telematics data sourced from automakers by a broader set of insurers and consumers.

“With more than 30 years as a trusted custodian of data for insurance, having the ability to provide greater transparency and accuracy is critical,” Hudson said.

“The latest advances among proprietary linking technology and advanced analytics capabilities enable us to link a driver to a vehicle and monitor the legitimacy of that person’s connection to the vehicle, ultimately allowing for a more trusted and personalized experience where they can benefit from their data,” he continued.

For more information about the new Drive Metrics telematics scoring model and the associated eBook, go to this website.