New data and advanced analytics continue to shake up the way life insurers underwrite mortality risk. SCOR’s Research and Development team is focused on understanding the predictive value of LexisNexis Risk Classifier in life insurance. Research shows that data used in the scoring model may well be the next frontier in life underwriting.
Risk Classifier is a risk assessment tool from LexisNexis that uses data from attributes derived from public records, driving history and credit to assess a proposed insured’s risk profile. We used LexisNexis data and output from their predictive model to analyze the correlation between their Risk Classifier scores and mortality in the sample population that was provided. The depersonalized data included 7.5 million records from a property and casualty insurance population and contained more than 200,000 deaths
Our comprehensive review found that Risk Classifier is an excellent predictor of all-cause mortality in the population that we studied with many indicators that could be applied to life insurance assumptions. See our brochure for more on our study of LexisNexis Risk Classifier.