WTW partners with Thatcham to explore new vehicle technology claims risk

Global broker  WTW has partnered with Thatcham Research to explore the impact of new vehicle technologies on claims risk using advanced data and analytics.

Vehicle technology is experiencing a “seismic transformation” with the use of Advanced Driver Assistance Systems (ADAS), keyless and connectivity systems, said WTW, which is adding new complexities for insurers. Claims leaders, underwriters, pricing teams, reserving actuaries and senior management need to understand the extent to which these novel risk factors are driving new claims trends.

The new tie-up will see Thatcham’s Variant Code’s vehicle specificity combine with WTW’s Claim Metrics data and analytics to give insurers “deeper, richer insights of emerging trends” in claims risks at a granular level in terms of claims characteristics, geography and vehicle type.

WTW’s Claim Metrics platform provides deep analysis of claims activity in the personal lines insurance market, benchmarking over £17 billion of motor claims spend and more than 40% of the UK motor market. Thatcham Research dataset Variant Code provides data granularity on the growing variety of standard and optional features in UK vehicles.

Thatcham was established by the motor insurance industry in 1969 with the specific aim of containing or reducing the cost of motor insurance claims while maintaining safety standards, has been delivering vehicle risk data on behalf of its members and the Association of British Insurers (ABI) for two decades.

Tom Helm, head of claims consulting, WTW, said: “We are excited to announce this new partnership, which delivers a powerful combination of two unique datasets, supported by market-leading analytics, that offers insurers exceptional levels of insight into emerging claims trends driven by changes in vehicle technology and, as a consequence, the opportunity to benchmark claims performance at a more precise and granular level.”

Daniel Payne, chief digital officer of Thatcham Research, added: “Vehicles are set to change more in the next five years than they have in the last 50. Combining the uniquely granular data and sophisticated analytics capabilities of Variant Code and Claim Metrics is a win-win for insurers. Empowered by new levels of insight, claims, underwriting and pricing teams are able to make more informed decisions, and price according to the specific features of a particular model variant. This capability is fundamental to maintaining competitive advantage, as vehicles evolve and technologies that were once the preserve of high-end models increasingly become available at entry level.”

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