HPI launches Motor Rating Factor
Risk evaluation is a critical process for motor insurers keen to stay one step ahead of their competitors, while ensuring continued growth and success. With this in mind, leading independent vehicle information organisation, HPI, is launching Motor Rating Factor, offering insurers the full breadth of its expertise and a comprehensive level of motor related information. HPI’s Motor Rating Factor is focused on predicting the insurance performance of individual vehicles far more accurately than current standards.
“Vehicle data offers essential support to the underwriting process of the motor insurance industry and HPI’s wealth of data means it can bring insurers the true risk cost associated with every motor vehicle,” explains Alastair Crossley, Finance & Insurance Director at HPI. “While the insurance industry has gained access to excellent intelligence on individual and geographical areas to aid in the calculating of risk, there has been room for improvement on vehicle data. HPI has developed Motor Rating Factor with the aim of using its data to improve the accuracy of a vehicle’s risk cost.”
Using a wide range of data sources, HPI has been able to generate a risk rating index for individual vehicles in the UK. With Motor Rating Factor, insurers benefit from a proven level of success. The predictiveness of the new product has been tested by the UK’s largest motor insurer, AVIVA, realising multi-million pound combined operating ratio savings along the way.
Delivered alongside the traditional HPI Vehicle lookup, Motor Rating Factor can be used directly within the heart of the motor insurance underwriting engine to identify, rate and then price a more accurate insurance quote.
Crossley concludes, “For the first time ever, insurers will be able to accurately price the unique risk cost of a vehicle. HPI’s Motor Rating Factor means insurers will be able to charge a more realistic premium for higher risks, helping them identify lower risk opportunities and increase market share in those areas.
“The launch of Motor Rating Factor is just the beginning, as our team of data experts continue to work behind the scenes evaluating new ideas that will bring further enhancements to the rating accuracy. In a tough market, Motor Rating Factor offers insurers a new level of risk assessment, allowing them to enhance their competitive edge, based on high quality vehicle data.”