Fintech CRIF has launched a new solution to help insurers more accurately account for traffic flows in the underwriting process.
With the new Traffic Exposure Score service, UK insurers will be able to apply geographical data about a driver’s location, their daily commute and what hazards they could potentially encounter on the road, to help fine-tune pricing strategy.
CRIF’s service draws on data not normally used in insurance decision-making using open, proprietary and third-party data sources, to help estimate the probability of an individual being in a traffic accident based on where they live and drive.
Traffic Exposure Score only requires an insurer to provide a postcode for where a driver lives. And can provide information on density of traffic-related points of interest (like nearby tube stations, bus stops and crossroads), the socio-demographic profile of the residents (which affects car protection levels) and other variables such as the make-up of the area whether it be city centre, suburbs, industrial, etc.
CRIF said its service will help insurance companies to create a more accurate picture of the risks motorists may face and in turn help prevent those drivers who are lower risk from paying higher than necessary premiums.
Having previously launched in other European countries, Traffic Exposure Score can help insurers to reduce their loss ratio by between 1.5% and 2.5%.
Sara Costantini, CRIF’s regional director for the UK & Ireland, said: “It is a difficult time for motorists, with the cost of insurance having increased significantly in the last year alone. This is making it harder for drivers to afford the cover they need, especially those who rely on it for their livelihood.
“Similarly for insurers, the rising cost of repairs and parts have driven up premium costs without necessarily increasing margins. The need to utilise data and analytics to take account of external factors like traffic conditions and the type of areas people drive in have therefore never been more crucial.”
Its launch comes after the announcement that it was bringing open banking services to automotive retailers offering BMW Financial Services, as well as the recent launch of ESG Analytics to help insurers better meet their sustainability goals.
