# Simplifying home insurance through property characteristics data
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-15
Category: INSURANCE
Category URL: https://financedigest.com/category/insurance
Meta Title: New UK Home Insurance Pricing Rules: Data Enrichment
Meta Description: Discover how innovative data enrichment tools can revolutionise home insurance, providing personalised quotes and accurate risk assessment for customers.
URL: https://financedigest.com/simplifying-home-insurance-through-property-characteristics-datahtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1130833057-1736816242461-compressed.jpg)

_![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/03-1736816242453-compressed.jpg)_

_By **Neill Slane,** senior vertical market manager, U.K. and Ireland at LexisNexis Risk Solution_

From 1st January 2022, the U.K. home insurance market began operating under new general insurance pricing rules [\[i\]](#_edn1) to ensure that at renewal, existing customers are priced the same as a new customer. These new regulations have provided an important opportunity for home [insurance providers to review how they can better serve and price customers](https://www.financedigest.com/customer-engagement-in-the-insurance-sector.html "Customer engagement in the insurance sector"), using data enrichment to build a fuller understanding of their risk at application and quote.

Bringing in more [data to make the process of buying home insurance](https://www.financedigest.com/how-data-is-revolutionising-car-insurance.html "How data is revolutionising car insurance") easier and the assessment of risk more accurate has multiple benefits. It may not only assist in delivering fair and accurate pricing at renewal and new [business but could also help evolve how home insurance](https://www.financedigest.com/are-there-tax-breaks-for-business-health-insurance.html "Are there tax breaks for business health insurance?") is packaged and sold.

One of the biggest [data enrichment innovations in home insurance](https://www.financedigest.com/should-insurers-buy-data-direct-from-their-customers.html "Should insurers buy data direct from their customers?"), is the ability to assess individual properties not general postcodes, really digging deep into the characteristics of the building; from floor area to rebuild cost, heating type to listed status and use this highly granular data to understand any possible changes in the property risk at renewal.

Has a new bathroom, kitchen or bedroom been added?  Has an extension been built?  Has the [property been sold in the past year](https://www.financedigest.com/10-year-david-goliath-crusade-finally-sees-justice-for-off-plan-spanish-property-buyers.html "10 year ‘David & Goliath’ crusade finally sees justice for off-plan Spanish property buyers")?  Has this customer invested in a [heat source pump](https://www.financedigest.com/cutting-business-costs-pros-of-using-commercial-heat-pumps-in-2016.html "Cutting business costs: Pros of using commercial heat pumps in 2016")? When viewed alongside environmental data down to the address level such as flood, subsidence and local crime [rates plus data](https://www.financedigest.com/dollar-advances-as-strong-u-s-data-backs-higher-rates-backdrop.html "Dollar advances as strong U.S. data backs higher rates backdrop") on the individual, the insurance provider is able to build a much more holistic view of the risk at quote. This not only helps to ensure the policy is right for the [customer’s needs](https://www.financedigest.com/future-proofing-your-small-business-its-time-to-listen-to-your-customers-needs.html "Future proofing your small business – it’s time to listen to your customer’s needs"), therefore reducing the risk of under-insurance – or indeed over-insurance – but that the price is right and fair.

[Home insurance](https://www.financedigest.com/what-is-the-difference-between-a-home-warranty-and-home-insurance.html "What is the Difference between a Home Warranty and Home Insurance?") providers cannot take loyalty for granted. In a study LexisNexis Risk Solutions conducted, 57% of homeowners [\[ii\]](#_edn2) shop around using aggregators and comparison sites every time their policy is up for renewal. Detailed, verified property data can really help [insurance providers differentiate their offerings to individual customer](https://www.financedigest.com/5-ways-a-ccm-platform-can-help-improve-customer-engagement-in-insurance.html "5 Ways a CCM platform can help improve customer engagement in insurance") segments and offer a more personalised quote.

For example, knowing up front that an applicant’s property is a listed building or that it has recently sold, the [insurance provider is empowered](https://www.financedigest.com/aon-data-empowers-unica-to-offer-flood-insurance-for-5-2bn-canadian-peril.html "Aon data empowers Unica to offer flood insurance for .2bn Canadian peril") to deliver a swift quote based on that knowledge. This can help build trust that the [insurance provider understands the homeowner’s needs](https://www.financedigest.com/breaking-down-the-types-of-insurance-you-need.html "Breaking Down the Types of Insurance You Need") and that if a claim arises, there are no misunderstandings over how the risk was presented at quote. It makes sense that the more insurance providers can impress householders with individual insights into their own wants and [needs](https://www.financedigest.com/reasons-you-need-a-car-insurance-when-driving-in-thailand.html "Reasons You Need a Car Insurance When Driving in Thailand") from a home insurance policy, the more likely they are to feel engaged with their brand.

Going a step further, if an insurer provider understands that a customer has a [rental property](https://www.financedigest.com/4-tips-for-landlords-to-increase-rental-property-profits.html "4 Tips for Landlords to Increase Rental Property Profits") plus a home in which they reside, the potential opens up to offer a packaged product. Data enrichment solutions can help [home insurance](https://www.financedigest.com/uk-motor-and-home-insurers-headed-for-heavy-losses-ey-warns.html "UK motor and home insurers headed for heavy losses, EY warns") providers understand more about each property risk, helping to make the most of potentially untapped markets.

The fact that 11% of homeowners [\[iii\]](#_edn3) in our study rarely shop around at renewal, simply renewing each year with the same provider, simply underlines that insurance customers want simplicity. Whatever the insurance [sector can do to reverse consumer](https://www.financedigest.com/whats-driving-consumer-opinion-in-the-insurance-sector.html "What’s driving consumer opinion in the Insurance Sector?") perception that the process of changing home insurance provider is complicated, has got to be a positive step forward.

Some home insurance questions are easy to answer, others can be much less so, leading to estimates and guesstimates, [creating a level of uncertainty](https://www.financedigest.com/banning-russian-aluminium-would-create-uncertainty-about-lmes-role-rusal.html "Banning Russian aluminium would create uncertainty about LME’s role -Rusal") and discomfort for the customer. Property [data enrichment solutions](https://www.financedigest.com/aon-introduces-new-cyber-solution-in-response-to-eu-regulation-on-data-protection.html "Aon introduces new cyber solution in response to EU regulation on data protection") like LexisNexis® Property Insights can be used to prefill applications in addition to supporting quotes. By automatically pre-populating application questions from 27 different [data attributes, data entry required by customers](https://www.financedigest.com/manchester-arts-centre-the-lowry-selects-logpoints-siem-technology-to-safeguard-customer-data.html "Manchester arts centre The Lowry selects LogPoint’s SIEM technology to safeguard customer data") is minimised. Prefilling data not only simplifies, but also substantially speeds up the quote process and reduces referrals. What’s more, by pre-populating the data, like year of build and rebuild cost, a quote can be [delivered in confidence that the data](https://www.financedigest.com/trendrating-1-3-delivers-faster-data-analysis-and-enhanced-risk-control-tools.html "Trendrating 1.3 delivers faster data analysis and enhanced risk control tools") is accurate, and in turn, the customer is reassured that their home insurance is fit for purpose.

Using highly granular [property characteristics for individual addresses could be a common success](https://www.financedigest.com/battling-uncertainty-is-the-key-to-property-investment-success.html "Battling uncertainty is the key to property investment success") factor in helping to provide fair, speedier and more accurate quotes for consumers. In the future, it could also help in building a more human-centred approach to insurance provision when used in tandem with past claims [data to build an even deeper understanding of the risk](https://www.financedigest.com/tesla-to-warn-of-data-privacy-risk-from-car-security-cameras-in-germany.html "Tesla to warn of data privacy risk from car security cameras in Germany") of the property. For example, if an [insurance provider](https://www.financedigest.com/two-thirds-of-consumers-would-prefer-to-deal-with-a-single-provider-for-insurance-products.html "Two-thirds of consumers would prefer to deal with a single provider for insurance products") knows the precise detail on a past claim for a burglary and at the same time, understands the exact number of rooms, how they are used, the parking space at the front of the house etc. they are in a far more informed position to ask questions about security, offer relevant advice and [insurance cover](https://www.financedigest.com/japan-insurers-to-maintain-cover-for-lng-vessels-in-russian-waters.html "Japan insurers to maintain cover for LNG vessels in Russian waters") tailored for the risk.

Those leading the charge in using data driven solutions to differentiate themselves in a brand-fickle [market may be more likely to diversify and grow](https://www.financedigest.com/the-edible-oils-market-to-grow-on-an-innovation-revealing-spree.html "The Edible Oils Market To Grow On An Innovation Revealing Spree"). Having the information at their fingertips to provide the personalised approach consumers want will benefit the market in delivering accurate quotes which will, in turn, help improve loss ratios and support profitability in the highly competitive home [insurance market](https://www.financedigest.com/a-look-ahead-to-2023-in-the-insurance-market.html "A Look Ahead to 2023 in the Insurance Market").

[\[i\]](#_ednref1) https://www.fca.org.uk/publications/policy-statements/ps21-11-general-insurance-pricing-practices-amendments

[\[ii\]](#_ednref2) https://risk.lexisnexis.co.uk/insights-resources/white-paper/a-clearer-view-of-claims-to-help-fight-frau

[\[iii\]](#_ednref3) https://risk.lexisnexis.co.uk/insights-resources/white-paper/a-clearer-view-of-claims-to-help-fight-frau


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---