Latest Development Regarding Subsidence Insurance Claims as Discussed by LexisNexis
In an effort to address the growing concern of subsidence in the UK, LexisNexis Risk Solutions and Service First, a Dublin-based Managing General Agent (MGA), have joined forces to enhance pricing decisions in e-traded commercial insurance.
LexisNexis Risk Solutions, a company that provides risk management solutions to various industries, including insurance, is working to support insurance providers in understanding the factors that influence subsidence risk. By providing perils data, they aim to improve quotability, enhance customer service, and strengthen the market's resilience against growing climate risks.
Caroline Elliott-Grey, senior product manager at LexisNexis Risk Solutions, emphasised the need for fast, accurate property-level risk data at the point of quote. She stated that the Association of British Insurers (ABI)'s latest figures underline the scale and urgency of the subsidence problem. Elliott-Grey also mentioned that by giving insurance providers access to robust perils and property data, they can help the market price risk more accurately and support consumers in understanding the factors that influence their premiums.
According to Elliott-Grey, extreme weather events can exacerbate the risk of subsidence in UK homes. Unseasonal warmth and wet weather patterns are factors contributing to the increased risk. Trees planted near load-bearing walls can potentially affect the foundations of homes or offices, adding to the complexity of the issue.
Geospatial intelligence data is a key tool in managing the rising claims of subsidence. LexisNexis Risk Solutions offers address-level risk scores for subsidence at the point of quote and in map form through LexisNexis Map View. This service is expected to help insurance providers meet the challenge posed by the increasing risk of subsidence due to climate change.
In a concerning prediction, analysis by LexisNexis Risk Solutions suggests that 1.2 million more homes in England will be at risk of subsidence by 2050, representing a 27% increase from the current estimated 4.5 million at-risk households.
The British Geological Survey, a government body responsible for providing geological and geophysical data and expertise to the UK, was not mentioned in the context of this collaboration. However, the agreement between LexisNexis and Service First is expected to help the insurance market price risk more accurately, providing a step forward in addressing the rising subsidence risk in the UK.
[1] Source: LexisNexis Risk Solutions analysis [2] Source: Association of British Insurers (ABI) figures [3] Source: Climate Change UK Government Report
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