Combined data assets give carriers an important tool to address COVID challenges and helps insurance carriers more accurately assess and price small business risk
LexisNexis® Risk Solutions, a data, analytics and technology company, has announced the launch of a new insurance model for the Attract™ for Commercial Insurance platform, which leverages its relationship with the Small Business Financial Exchange (SBFE) and provides insurance carriers with extended visibility and financial data insight on small and micro businesses. This model combines business credit data from SBFE with business data from LexisNexis Risk Solutions to create a more inclusive snapshot of a small business insurance risk.
The Attract for Commercial Insurance platform provides predictive modeling for small businesses that enables commercial insurers to evaluate a business by its loss propensity at the point of quote, underwriting or renewal to obtain a more accurate, consistent loss prediction and policy pricing. With the addition of this new incremental model and dataset, SBFE, the platform provides, on average, an 82% scorable rate on businesses. The SBFE data, which includes more than 39 million small and micro businesses to the platform brings additional financial data not found in other traditional sources today. Simultaneously, data from LexisNexis Risk Solutions, such as public records as well as other data sources, supplements the model when a business has a limited financial footprint.
“We’re continuously looking for ways to add value for commercial insurers, and the devastating impact that COVID-19 has had on small businesses over the past year underscores the challenges of accurately insuring them,” said Sharon Maloney, director of Commercial Insurance, LexisNexis Risk Solutions. “Adding trusted industry data from SBFE enables us to help minimize the information gap and provide carriers with the risk models they need to help strengthen their underwriting of small businesses.”
By using the Attract for Commercial Insurance platform, carriers gain access to multiple proprietary insurance scores built and validated on policy and loss data representing over 10 million commercial policy terms. The platform combines the traditional business credit reporting process, along with the SBFE data, in a single reporting format, which allows for more consistent use of business credit in the insurance process.
“The ability to seamlessly integrate our rich financial payment data into the LexisNexis Attract model offers mutual benefit to small businesses and their insurers,” said Elisabeth Hughes MacDonald, CEO of SBFE. “This has been a tough year for small businesses across the country, and we hope that by contributing to innovative solutions like this, we’re able to help better protect the country’s small business backbone and provide them with the underwriting needed to bounce back quickly in case of another unforeseen event.”