LexisNexis Risk Solutions has formed a strategic relationship with BuildFax to assist homeowners insurance companies with the challenges associated with insuring homes. Through this relationship, insurers will be able to acquire building permit information to enhance their ability to identify, assess, select and manage risks that are consistent with carriers’ underwriting philosophies and risk appetites. With this new offering, insurers will also be able to address an emerging need for “age of roof” information to improve the profitability of their homeowners line of business.
“In 2011, carriers lost an incredible $25.8 billion on thunderstorm claims; the most expensive year on record,” said Holly Tachovsky, President of BuildFax. “Our clients are telling us that underwriting performance within homeowners has been either flat or even at a slight loss. But when combined with today’s depressed investment yields, we’re hearing that the situation is intolerable; and underwriting performance must improve. This partnership enables carriers to respond and profit in this environment.”
Over the last several years, the combination of downward pricing pressure because of a poor economy and the need for carriers to raise rates to compensate for extraordinary weather-related losses are driving carriers to innovate their homeowners’ product lines. The relationship with BuildFax will allow carriers to target those risks with more favorable characteristics, such as those based on age of roof, new construction or home improvements. For carriers who rely on LexisNexis for pre-fill options, BuildFax’s roof intelligence will enable more accurate rate and product decisions than traditional sources of roof age, such as year built.
LexisNexis® Risk provides essential information that helps customers across all industries and government predict, assess and manage risk.
BuildFax is an automated source for national, historical building permit data, providing details on property condition and improvements – such as major remodels, additions, and new roofs.