Confusing technology terms are being explained through a new data tool for insurers and developed by Thatcham Research.
The lack of data regarding the varying features of newer vehicle models can fundamentally affect an insurer’s understanding of vehicle risk and there are up to 50,000 possible variants recorded on cars since 2015.
Many insurers struggle to identify features that have become available in more car models and marketed under different product names. A new collaboration between Verisk and Thatcham Research aims to solve this industry problem and it will be updated each week.
Verisk, a leading global data analytics provider, is enhancing its motor insurance solutions with Thatcham Research’s Variant Code, a unique and extensive dataset that provides updated information on the growing variety of standard and optional features in UK vehicles.
Dan Payne, Chief Digital Officer at Thatcham Research said, “This is about accurate risk assessment at a uniquely granular level. Variant Code offers a competitive advantage, empowering Verisk’s insurer customers to make more informed and intelligent decisions, and price according to the features present on a particular model variant. This is fundamental as vehicles evolve and technologies that were once the preserve of high-end models are increasingly made available at entry level.”
Verisk is also benefitting from the aggregated view of data that Variant Code provides. Sean Moriarty, operations manager, Verisk said, “Carmakers have their own naming conventions for vehicle features, which can be problematic. However Variant Code provides this information using a consistent nomenclature, ensuring the quick and easy identification of these features.”
Helping insurers make more informed decisions
With Thatcham Research’s Variant Code, Verisk can help insurers more accurately identify the potential presence of these features across model variants. Features such as Advanced Driver Assistance Systems (ADAS), expensive headlights, and keyless and connectivity systems, will now be captured more accurately, addressing what has been a frustration for the insurance industry.
“Variant Code addresses a long-standing challenge to the accurate underwriting of new vehicle models, benefitting both insurers and insureds. Until now, there has been a lack of clarity regarding the fitment of certain features across vehicle variants and their potential positive or negative impact on risk. ADAS have been a particular issue – with little information available to insurers on the presence of technology that can reduce accident risk,” added Moriarty.