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Unveiling the Future of Risk Assessment: LexisNexis Location Intelligence

In a groundbreaking move aimed at revolutionizing the commercial property insurance sector, LexisNexis Risk Solutions has launched its new product, Location Intelligence for Commercial. This innovative underwriting solution brings together predictive analytics and advanced data processing to empower commercial insurers in the United States, aiming to improve the accuracy and efficiency of risk assessments amid rising climate-related threats.

The Challenge of Modern Underwriting

As the rate of severe weather incidents increases, commercial insurers face unprecedented challenges. These events account for a staggering 65% of all property losses in the U.S. As a response, insurers are required to refine their underwriting, pricing, and portfolio management processes. The introduction of Location Intelligence seeks to address these hurdles, offering a comprehensive assessment tool that harnesses a plethora of data to pinpoint property risks more effectively than ever before.

A New Standard in Risk Assessment

Location Intelligence uses a holistic approach that integrates industry-specific loss data, advanced weather forensics, and detailed property features to produce highly accurate predictive modeling risk scores. This internally developed, patent-pending solution combines information from multiple sources, including comprehensive claims data and neural network algorithms, to provide commercial insurance carriers with advanced insights directly applicable to their workflows.

According to David Zona, Senior Vice President at LexisNexis Risk Solutions, this tool marks a significant shift in how property risk is assessed. Traditional sources of information often fall short in providing enough context for comprehensive risk evaluation. By utilizing Location Intelligence, insurers can now achieve a clearer understanding of risk, identifying which properties could significantly contribute to potential losses in the coming year. For instance, the solution can highlight that merely 10% of the properties insured might account for a third of upcoming losses, enabling better risk management.

Key Features of Location Intelligence

1. Enhanced Predictive Modeling

One of the standout features of Location Intelligence is its unparalleled predictive modeling capabilities. The system claims to deliver over 20 times the lift compared to traditional loss propensity models. This allows commercial insurers to more precisely identify high-risk properties and anticipate potential losses linked to weather events.

2. Integration of Multi-source Data

The strength of Location Intelligence lies in its ability to synthesize data from various sources, including aerial imagery, claims information, and historical weather patterns. This multifaceted approach provides a more complete risk profile than traditional assessments, moving beyond a one-dimensional analysis that only considers existing visual data.

3. Workflow Automation and Efficiency

The tool is designed to integrate seamlessly into existing underwriting and renewal processes, thereby enhancing operational efficiencies. By supporting straight-through processing, Location Intelligence aims to streamline risk control strategies and reduce the time needed for agents to assess and manage risks effectively.

4. Greater Transparency

Location Intelligence offers a more transparent and adaptable approach to risk assessment, making it easier for insurance carriers to comply with evolving regulatory requirements. This ensures business owners receive thorough insights into their commercial property risks, which is essential for obtaining proper insurance coverage when needed.

The Bigger Picture

As we progress into an era of increasing climate variability and uncertainty, commercial property insurers are under pressure to adapt rapidly. LexisNexis location Intelligence is positioned as a vital tool that enables carriers to not only mitigate risks but also enhance profitability by utilizing the most advanced predictive insights.

Zona emphasizes that with year-on-year losses and the volatility introduced by changing weather patterns, insurers must go beyond historical data. They require actionable, forward-thinking insights that will help them not only to survive but thrive while supporting small businesses across the nation. This new solution represents a beacon of innovation, paving the way for resilient risk management in a challenging climate.

For those interested in enhancing their commercial property insurance practices, additional information on LexisNexis Location Intelligence can be accessed here.

About LexisNexis Risk Solutions

Headquartered in Atlanta, Georgia, LexisNexis Risk Solutions is a pioneer in harnessing data analytics and technology to provide insightful solutions across a variety of fields, including insurance. They continue to lead the way in innovations that empower businesses to reduce risks and improve decision-making. For further insights into their offerings, visit their official website.