EXPERT FORECAST : BANKING AND FINANCE the most likely to receive take up . It was also valuable to understand that 81 % of consumers who have used NAPs say they are likely to purchase or use one of these products again within the next 12 months . Compared to non-NAP users , they are more likely to be younger , have higher incomes , have children in their households and live in metropolitan areas .
To move this sector of the market forward so that consumers have more choice of NAP providers , and more competition over pricing , the scarcity of data needs to be solved . Part of this will come down to applying data enrichment in the same way it is used in annualised policies so there ’ s more knowledge about the vehicles being insured , as well as the driving and claims history for the individual . Data enrichment at the quote stage can also help identify if fraud could be a problem – whether that ’ s fronting or knowing that an individual has been linked to insurance fraud in the past .
The next stage will be the creation of contributory database of NAPs to match the insights the market already benefits from for annualised policies .
This range of intelligence could do so much more than support pricing and underwriting – it could provide the basis for product design and marketing decisions ; it could make the application process easier for customers and make claims more of a frictionless experience .
It seems we ’ re at an inflection point in nonannualised insurance . Consumers want these products and insurance providers have a big opportunity to deliver them so surely the only way is up . Shared data from the market will help drive this growth and LexisNexis Risk Solutions is poised to facilitate this through a new contributory database that will deliver back far more than it takes in . � www . intelligentfin . tech
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