“Early Adopters” States Approve LexisNexis® Rooftop Analytics Home Insurance Rating
The LexisNexis Rooftop solution helps home insurance companies more accurately assess roof risk by help improve the relativity of loss cost and loss ratio
ATLANTE, May 32022 /PRNewswire/ — LexisNexis® Risk Solutions, a leading provider of data and analytics for the insurance industry, today announced that LexisNexis® Rooftop, a risk assessment tool for insurance companies home insurance, has been approved for rating in a number of states where the costs of losses from wind and hail have traditionally been high. Alabama, Georgia, Louisiana and South Dakota have recently been added to the growing list of states that have endorsed the model. LexisNexis Rooftop has been approved in each state where the design is registered.
LexisNexis Rooftop provides a predictive model to help home insurance companies segment properties based on roof risk. The score is created by combining aerial imagery information with weather-related total loss experience from auto and home insurance claims information, which assesses pre-existing damage and the likelihood of a future claim due to wind or hail. LexisNexis Rooftop aerial imagery information comes from Arturo, a provider of artificial intelligence analytics of property information and predictive analytics.
Home insurance loss ratios have increased, with the average loss ratio now above 89%, according to the latest report from S&P Global Market Intelligence, and the six states that have approved LexisNexis Rooftop account for nearly one-fifth (19, 2%) of all hail losses nationwide. According to the LexisNexis Home Trends 2021 report, Alabama, Georgia and Louisiana are three of the states with the highest wind-related losses between 2015 and 2020, and South Dakota has some of the highest loss costs for hail over that same six-year period.
“Roofs in poor condition are more prone to loss in catastrophic and non-catastrophic situations,” said Erin Oswalt, director of home insurance at LexisNexis Risk Solutions. As the market continues to see increasing levels of severity, frequency and types of catastrophic loss, home insurers are asking themselves how to anticipate major weather events.”
To help combat this, many home insurers are evaluating their pricing plans to determine how they can best manage their expense ratios. The LexisNexis Rooftop model shows up to 20 times the relativity of loss costs and an 18 times increase in loss rate relativity between the highest risk properties and the lowest risk properties. With accompanying data attributes, LexisNexis Rooftop can serve as a tool for home insurers for faster and more cost-effective decision making.
“As roof loss ratios continue to rise, home insurance companies are constantly looking for ways to better segment properties for roof risk,” Oswalt said. “With LexisNexis Rooftop now approved in six states, several of which have some of the highest wind and hail claims in the nation, and additional regulatory filings underway, home insurers serving these states can better manage their expense ratios and their pricing policies more accurately.”
To help insurers better assess risk, LexisNexis Rooftop:
- Provides a predictive risk score from 1 to 100 that indicates the likelihood of a significant climate claim over the next 12 months.
- Returns a score even if a recent aerial image is not available.
- Provides up to 80 actionable attributes, including recent weather events and related claims information, as well as dozens of Arturo’s image details.
- Is available system-to-system in an automated process through a single point of access where LexisNexis Risk Solutions provides state-of-the-art data analysis solutions such as CLUE® Property, LexisNexis® Current Carrier Property, LexisNexis® Property Data Prefill and others .
LexisNexis Rooftop will continue to be filed in other states, and LexisNexis Risk Solutions has a filing support team available to support direct carrier filings.
For more information on LexisNexis Rooftop, click here.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to deliver insights that help businesses and government entities reduce risk and improve decisions for the benefit of people everywhere. We provide data and technology solutions for a wide range of industries, including insurance, financial services, healthcare and government. Headquarters in the metro Atlanta, Georgia, we have offices around the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision-making tools for professionals and enterprises. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
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