The agreement re-establishes the power of using advanced driver assistance systems for more personalised insurance 

LexisNexis Risk Solutions has teamed up with major original equipment manufacturer (OEM) Mercedes-Benz Connectivity Services GmbH for a personalised insurance proposition.

This will see Mercedes-Benz customers in Europe benefit from personalised insurance products and programmes based on vehicles’ advanced driver assistance systems (ADAS).

The new agreement underlines the power of using vehicle safety features to deliver more personalised insurance services to consumers based on vehicle data.

Sherezad Rehmann, senior director of European connected car at LexisNexis Risk Solutions, said: “Mercedes-Benz Connectivity Services GmbH understands the huge potential vehicle-centric data holds for more personalised insurance cover, safer driving and to incentivise investment in ADAS.

“We know ADAS can reduce claims frequency and, as we gather more claims data from the insurance market, that insight can help with pricing and driving further investment in ADAS development.

”Mercedes-Benz Connectivity Services GmbH is a leader in understanding how these insights can benefit its vehicle owners and is working with us during this pivotal moment in the evolution of motor insurance using connected car and vehicle build data.”

Wide difference in naming

The agreement aims to allow Mercedes-Benz customers to make full use of the investment they have made into their vehicle’s ADAS when they shop for insurance by enabling the insurance sector to understand exactly how a vehicle is equipped at the point of quote.

For example, when a customer requests a quote for insurance and agrees to the processing of equipment-related information, LexisNexis Risk Solutions can check for the presence of ADAS features related to that specific vehicle using an applied processing interface (API) which is provided by Mercedes-Benz Connectivity Services GmbH.

This insight can then be fed into the insurance market’s quoting systems. Both organisations have data protection processes in place to protect the customer’s privacy. 

Howard Abbey, autonomous car specialist at SBD Automotive, said: “The ADAS features included in new cars have been linked to reducing accidents and those ADAS options are more frequently purchased.

“However, wide differences in ADAS naming has made it difficult for consumers and the industry to correctly equate systems from different OEMs. This makes it difficult for insurance providers to give the correct risk reduction savings to owners of vehicles with ADAS.”

According to SBD Automotive, across Europe, the average number of ADAS features on a new car model increased from 4.2 in 2017 to 7.1 in 2020.

LexisNexis’s research showed that beyond number of features, the type and combination of ADAS can provide greater precision in managing insurance risk too.

The firm hopes to normalise and provide the outcome from OEM data to insurance providers in a secure and compliant manner, delivered through its LexisNexis Vehicle Build solution.

Rehmann added: “We have purposefully and mindfully created a bridge between car makers and the insurance market, building on our 30-year history in managing consumer data. Thanks to expertise and direct links with the insurance sector, consumers will soon be able to shop for insurance in a whole new and empowering way.”