LexisNexis Risk Solutions


Partner Details

Phone: +44 7816 205426 (Shane McCabe)
Email: shane.mccabe@lexisnexisrisk.com

Partner Articles

Richard Toomey, senior vertical market manager, commercial Insurance, U.K & Ireland, LexisNexis Risk Solutions

Global temperature increase will exceed 1.5˚C at some point in the near term according to The United Nations Secretary General[i], meanwhile The Chair of the Climate Change Advisory Council, Marie Donnelly warns that “Ireland is not sufficiently prepared to adapt to the levels of climate change which we are currently experiencing. Much of our infrastructure was built to cope with the climate of the mid-20th century”[ii].

As Marie Donnelly reiterates that the time to act is now, Ireland is already succumbing to coastal erosion due to sea level rise, triggering resilience planning including reinforcing beaches, building bulkheads and creating breakwaters off-shore.  This will come as small relief to the 1.9 million people who live within 5km of the coast or the 40,000 who reside less than 100 metres from the sea[iii].  Meanwhile as the climate continues to alter, Ireland is expected to see a big reduction in the annual levels of rainfall during spring and summer but a big increase in heavy rainfall in winter and autumn, likely resulting in wetter winters[iv].  Time is critical and insurance providers need to play their part in protecting policyholders against the increasing risks the country is facing using geospatial data intelligence as an ally.

Ultimately, The Office for Public Works (OPW) is responsible for managing flood risk in Ireland.  In fact it is currently enacting its Flood Risk Management Plan which proposes new flood relief schemes for 122 communities throughout the country which will protect 11,500 properties[v]. The flooding and destruction caused by last year’s Storm Eunice[vi], shows how urgently these resilience measures are needed. But so too are the data insights that tell insurance providers exactly which homes and businesses could be at risk, to help price customers more accurately and support them through a flood event. Visualising that data in map form makes it far easier to comprehend and act upon, given our brains are hardwired to respond and react to images.

It’s for this reason that geospatial data visualisation tools such as LexisNexis® Map View have become a key part of insurance provider’s toolkit. Insurance providers can instantly understand the perils risk for a single property, a small area boundary, a whole region/townland or an entire book of business. Not only is this valuable for underwriting, pricing and swiftly calculating accumulations of risk, it is also vital in enabling insurance providers to prepare for and respond to on-going events.

LexisNexis® Map View enables weather event scenarios to be plotted in the safety of a desktop environment. In real-life weather events this same technology allows insurance providers to pinpoint policyholders’ homes threatened by flood water.  This gives insurance providers valuable time to alert customers to move themselves and their possessions out of harm’s way. Insurance providers can also immediately understand their exposures in an event and take decisions based on the data to decline new business in the affected area.

Understanding precisely which policyholders are affected also helps to get on the ground support to the right areas to expedite the claims process and also helps to tackle the problem of fraudsters attempting to claim even though they were unaffected by the event.

Floods and extreme weather events are an inevitable part of life in Ireland, presenting a risk when people, property, the environment or cultural heritage is damaged.  Unfortunately however, environmental risks are increasing and the insurance sector needs to maximise resilience. Geospatial data intelligence and the data visualisation tools that can make that data more actionable will continue to evolve to help the market plan for claims surges and protect Irish customers as far possible from the impacts of climate change.

LexisNexis® Map View not only supports flood risk perils but a range of other hazard data that impacts insurance risk including fire block accumulation, climate change data and windstorm.

Data provided in LexisNexis® Map View can also be delivered at point of quote through APIs.

[i] https://www.climatecouncil.ie/media/climatechangeadvisorycouncil/contentassets/documents/news/Chair%20of%20Council%20Reaction%20to%20IPCC%20report.pdf

[ii] https://www.climatecouncil.ie/media/climatechangeadvisorycouncil/contentassets/documents/news/Chair%20of%20Council%20Reaction%20to%20IPCC%20report.pdf

[iii] https://www.dublincity.ie/climate-change-action-plan-2019-2024/milestone-2-research/adaption-baseline

[iv] https://www.epa.ie/environment-and-you/climate-change/what-impact-will-climate-change-have-for-ireland/

[v] https://www.floodinfo.ie/about_floodplans/

[vi] https://cli.fusio.net/cli/stormcenter/Eunice.pdf

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Shane McCabe, strategic account manager, Insurance, Ireland, LexisNexis Risk Solutions

Insurance fraud comes in many guises, as Brokers Ireland members know all too well but it’s the rise in application fraud, largely due to the cost of living crisis that is creating a real cause for concern.  There are two strands to this ‘front end’ fraud – the opportunistic and the organised.

First there’s the individual who attempts to ‘hide’ or ‘manipulate’ certain facts about themselves or their vehicle in the hope for a cheaper quote.  It might be that they say the vehicle is parked in a garage overnight when it’s actually on the road, or it could be that they deliberately mis-state the number of claims they have had previously. This is opportunistic fraud which has been pretty difficult for brokers and their insurance partners to spot prior to policy inception.

Quote manipulation is a particular problem. In a study[i] we did in the UK last year, 48% of motor insurance buyers thought it was completely or somewhat acceptable to deliberately misstate information to obtain a lower quote.  When we asked the same question to Irish insurance buyers at the tail end of 2022, the results were a little more positive but still, 25% thought it was completely or somewhat acceptable to manipulate a quote[ii].  So that means 1 in 4 quotes may be provided on the basis of inaccurate information.

Data solutions using quoting behaviour data and past claims data are evolving to help brokers identify these cases.  Of course, the more that’s done to educate customers on the risks of mis-stating information in the application, the better and brokers have always played a vital role in helping consumers understand that honesty really is the only policy when buying or claiming on insurance.  The alternative could prove very costly.

Organised application fraud is on an altogether more sinister and worrying level at this time.  It’s a topic we have covered before but the latest data suggests the problem is getting worse[iii].  Ghost brokers are posing as legimitate online insurance providers to lure unsuspecting consumers with artificially low insurance quotes – usually advertised on social media or other online groups.  The consumer pays for a policy in full, assuming in most cases that it’s legitimate.

Sometimes the ghost broker will add the victim as a named driver to an existing, legitimate policy, unbeknown to the victim or the main proposer of that policy.  They may also set up a policy in the victim’s name then cancel it. These tactics mean they have documentation to pass on to the unwitting consumer.  The scam soon comes home to roost when the victim either has an accident or is pulled over by the police for being uninsured. Either way, they have lost their money and risk losing their car.

It’s little surprise that tougher regulations on social media are being called for by LV=.  This is in response to a 31% rise the insurer has seen in policy fraud from Q4 2022 to Q 2023[iv] and a 143% increase in ghost broker referrals LV= has made to the police. Aviva in November last year said ghost broking is making up 15% of all policy fraud due the cost of living crisis[v].  And just a reminder that in the past 12 months more than 55,000[vi] fraudulent motor insurance applications have been discovered by the Insurance Fraud Bureau.

As we have stressed in previous blogs for Brokers Ireland on this worrying trend, one of the best ways to tackle ghost broking is to know more about the applicant before policy inception.  More often than not, a ghost broker will supply their own email address for documentation from an insurance provider. It therefore makes sense to check that email address and its digital footprint as early in the application process as possible. Does it have links to fraud?  Does it bear any relation to the proposer’s name? These are the questions brokers need to ask themselves as part of the identity validation checks they undertake at the point of quote.  Solutions such as LexisNexis® Emailage® Rapid can answer those questions and now more than ever that insight is needed to put a spanner in the works of insurance scammers.

[i] https://risk.lexisnexis.co.uk/about-us/press-room/press-release/20220511-quote-intelligence

[ii] 1000 insurance purchasers surveyed in the ROI, November 2022 through Maru/Hub.

[iii] https://www.insuranceage.co.uk/broker/7952961/calls-for-tougher-social-media-regulation-amid-ghost-broking-explosion

[iv] https://www.insuranceage.co.uk/broker/7952961/calls-for-tougher-social-media-regulation-amid-ghost-broking-explosion

[v] https://www.aviva.com/newsroom/news-releases/2022/12/aviva-reports-16-percent-rise-in-application-fraud-over-same-period-in-2021/

[vi] https://insurancefraudbureau.org/media-centre/news/2022/drivers-urged-to-watch-out-for-fake-insurance-deals-or-risk-crushing-consequences/

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First solution – LexisNexis® Emailage® Rapid – will flag the signs of fraud

It has never been more important for brokers to use data to understand risk and opportunity, so as a leading data, analytics and technology provider to 97% of the U.K. insurance market we are delighted LexisNexis® Risk Solutions has expanded into the region and become corporate partners of Brokers Ireland.

Brokers Ireland members will now be able to take advantage of greater choice and scale in data enrichment solutions to help ensure consumers are priced accurately and fairly and protected from fraud risks such as ghost broking as the cost of living rises and fraud climbs[i]. Insurance fraud is costing insurance companies in Ireland an estimated 200 million annually[ii].

LexisNexis Risk Solutions is now ready to help Irish brokers make faster decisions at the point of quote and claim, reduce insurance application fraud, improve pricing accuracy and help minimise risk exposure across their personal lines businesses. Most importantly, more insight means brokers have more opportunity to deliver a better customer experience when they are buying or renewing a policy.

We’re starting as we mean to go on with the launch of, LexisNexis® Emailage® Rapid for the Irish insurance market. Emailage Rapid is a powerful fraud risk scoring solution based on the email address and other personal information provided during the personal lines insurance application process. As well as helping to combat fraud, it helps reduce the cost of cancellations – A challenge for brokers.

The urgent need for this solution is evident in research we have conducted amongst Irish consumers which shows over half of young people have been tempted to buy fake insurance online. Read more here.

Shane McCabe is your key point of contact, bringing more than 18 years’ experience in the Irish insurance market.

The expanded business will share space with the highly expert and continuously growing team of data scientists LexisNexis Risk Solutions Insurance already has based in Dublin, who support Irish insurance providers with geospatial intelligence solutions and advanced analytics, as well as provide consulting on all things data science globally.

Shane McCabe, said: “Brokers in Ireland face similar challenges as those in the U.K., so it’s only right that we extend our proven solutions to the Irish insurance community. Kicking off with the launch of Emailage Rapid at a time when fraud is becoming so prevalent is evidence of our drive to solve the market’s pain points with data. Having an operation firmly in the region also means we can be much more hands-on, which is essential to building trust and engendering long term relationships.

“LexisNexis Risk Solutions is committed to ensuring Irish brokers can access the intelligence they need to support profitable business growth and we look forward to a long and mutually beneficial relationship with Brokers Ireland.”

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As the economic squeeze continues, data suggests that one in every 13 private vehicles on Irish roads is currently being used without insurance[i].  Meanwhile, the Economic and Social Research Institute for Ireland warns of persistent cost-of-living pressures and core inflation of 7.1% this year[ii].   Brokers are all too keenly aware that delivering a great customer experience is vital to help ensure people have the protection they need at a fair price without having to jump through too many hoops at application and quote stage. Email address-based risk scores can reduce friction, increase the speed and accuracy of pricing and help stop fraud in its tracks.

While consumers expect a swift and friction free application process with fair and accurate quotes,  brokers also need to ensure the risks they are passing on to their insurance partners meet their appetite and don’t pose a threat of fraud. They need to carry out the right validation checks to understand the risk and protect their insurance partners but in a very seamless way for the customer. It can be a tricky balancing act made all the more challenging by the current economic environment.

Enter the humble email address. With 86% of Ireland’s internet users using email[iii], it is easy to see the capacity an email address holds as a powerful identity verification tool.  Given an email address is generally provided during the application process, using email intelligence for validation checks has to be one of the most frictionless methods of confirming the customer is who they say they are.

LexisNexis® Emailage® Rapid  is a powerful fraud risk scoring solution based on the email address and other personal information provided at application. Based on billions of transactions from global payment processors and other online industries, including 82,200 fraud events shared on average daily[iv], insurance providers in Ireland can now access an instant risk score[v] as part of the risk assessment process. This score indicates whether the identity is genuine or whether it could be fraudulent.

As well as helping speed up identity verification and so smoothing the customer journey, it also has the power to help inform pricing decisions when used alongside public and private datasets to build a fuller picture of the individual at the point of quote.

Knowing that 60% of Irish policyholders prefer to buy insurance online[vi] and 74% of Irish policyholders prefer to communicate with their insurance provider online or via text or mobile app,[vii]  digital channels are here to stay and brokers must find ways to more accurately validate data.

By harnessing data solutions such as LexisNexis® Emailage® Rapid to improve the customer experience, brokers can also free-up valuable time previously spent on post-sale ID validation checks, to maximise engagement elsewhere in the insurance lifecycle.

Society needs insurance to function effectively and brokers already play a valuable role in enabling Irish consumers to obtain fair pricing, by infusing data into workflows to speed up the on-boarding process and allow people to buy policies based on their individual risk.  There’s no doubt email address based risk scores can take the quote and buy process to the next level.  Solutions such as LexisNexis® Emailage® Rapid  recently launched in the Republic of Ireland can support a smooth customer experience and reduce the market’s exposure to fraud, helping to keep insurance costs down as policyholders face the economic headwinds.

Shane McCabe, strategic account manager, Insurance, Ireland, LexisNexis Risk Solutions

  • [i] https://www.mibi.ie/mibi-news/level-of-uninsured-driving-in-ireland-problematic-.1997.html
  • [ii] https://www.esri.ie/news/recession-risks-amongst-irelands-main-trading-partners-persistent-cost-of-living-pressures-and
  • [iii] https://www.cso.ie/en/releasesandpublications/ep/p-isshh/informationsocietystatistics-households2020/
  • [iv] https://risk.lexisnexis.co.uk/products/emailage?utm_source=google&utm+medium=paid&utm+campaign=brand-emailage&utm_content=business-non-
  • [v] LexisNexis® Emailage® Rapid is a powerful fraud risk scoring solution based on the email address and other personal information provided during the application process. In February 2020, LexisNexis Risk Solutions acquired Emailage, a fraud prevention and risk management solutions provider. LexisNexis® Emailage® is a proven risk assessment tool that is fuelled by continuously updating global digital insights and uses a patented, proprietary analytic approach to reimagine fraud detection.
  • [vi] https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/FinancialServices/ie-fs-the-future-of-insurance-survey-21072022.pdf
  • [vii] https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/FinancialServices/ie-fs-the-future-of-insurance-survey-21072022.pdf
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Just 24% of Irish insurance policyholders know what a ghost broker is. Identity verification checks must shift up a gear, says Shane McCabe, strategic account manager, Insurance, Ireland, LexisNexis Risk Solutions

Please read Shane’s interesting article on link provided

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