What Is LexisNexis?: A Hands-on Guide To Understanding The Life Insurance And LexisNexis Relationship


As the insurance industry moves into the 21st century and technology advancements provide people with more access to information, the way life insurance applications are being reviewed and approved is also changing. Life insurance companies, with access to digital data from providers like LexisNexis, are now able to more effectively gather the information they need to make a more accurate decision on life insurance rates and minimize risk in order to help keep life insurance costs low.

Editor’s Note: Per the request of LexisNexis, we have removed the link showing an example of a LexisNexis inspection report.

What Is LexisNexis?

LexisNexis has been around for years, primarily in a law research function, and is a massive data repository and aggregator. They house millions of records across various niches of data, both public and private. As technology and the need for information has grown, LexisNexis has become one of the main players in data analytics and aggregation for industries around the world.

Who Is LexisNexis Risk Solutions?

The arm of LexisNexis that the insurance and financial services industries rely on for information is known as LexisNexis Risk Solutions. This branch of the company is the main source of data that is used to help underwrite a life insurance policy during the “consumer reporting” part of the process.

Who Uses LexisNexis Risk Solutions?

Every major insurance company that states they check a customer’s “consumer report” (which is almost all of them) is primarily using LexisNexis data. Collections, healthcare, government, insurance, finance, corporate HR, and law enforcement all use the aggregated data LexisNexis provides to help mitigate risk and to get a better understanding of the person’s overall digital life. For the insurance industry, they are given what is called an “Electronic Inspection Report”, which is then used to help classify your potential risk.

http://www.scorgloballifeamericas.com/en-us/knowledgecenter/Pages/LexisNexisRiskClassifierPreview.pdf

What Does LexisNexis Show? What Does LexisNexis Background Check Include?

The electronic inspection report shows underwriters the following:

  • Criminal Offenses
  • Bankruptcies
  • Liens
  • Property Ownership
  • Professional Licenses
  • Weapons License
  • Mortgages

How Does LexisNexis Get Information?

LexisNexis pulls their data from databases all over the country and assembles the information in one central location, allowing underwriters the ability to learn more about the person’s overall financial standing outside of just a credit report. Federal, state, and county databases provide much of the information housed inside these reports.

Why Does My Credit Affect My Life Insurance?

Underwriters believe there is a correlation between someone’s credit history and an increased probability in that person being a higher risk, both for life insurance as well as other forms of insurance like auto insurance. Because of this, insurance companies are best able to review your information and make decisions based on their perceived level of risk. There are a few companies who opt to not use this information but more are switching to this type of digital underwriting to stay competitive.

Additional Resources:

http://blogs.lexisnexis.com/insurance-insights/2018/04/life-insurers-innovation-into-opportunity-through-predictive-modeling/

https://risk.lexisnexis.com/products/risk-classifier

https://risk.lexisnexis.com/-/media/files/insurance/brochure/electronic_inspection_report-pdf.pdf

https://risk.lexisnexis.com/insurance/quoting-and-underwriting

https://risk.lexisnexis.com/insurance/life-insurance-solutions

https://risk.lexisnexis.com/-/media/files/insurance/white-paper/commercial-protfolio-risk-management-pdf.pdf

https://risk.lexisnexis.com/about-us/alliance-partnerships/insurance/data-delivery

http://blogs.lexisnexis.com/insurance-insights/2017/02/big-data-analytics-life-insurance-underwriting/

http://blogs.lexisnexis.com/insurance-insights/2018/04/life-insurers-innovation-into-opportunity-through-predictive-modeling/

http://www.scorgloballifeamericas.com/en-us/knowledgecenter/Pages/LexisNexisRiskClassifierPreview.pdf

https://www.hannover-re.com/1049712/new-life-insurance-underwriting-tools-enable-insurers-to-meet-consumer-expectations-resource-2016.pdf

https://www.munichre.com/site/marclife-mobile/get/documents_E171307011/marclife/assset.marclife/Documents/Publications/LexisNexis-Risk-Classifer-An-Effective-Indicator-of-Mortality-Risk-Whitepaper.pdf

https://risk.lexisnexis.com/about-us/press-room/press-release/04-27-2016-underwriting-industry

https://risk.lexisnexis.com/about-us/press-room/press-release/20180215-munich-re

https://www.thinkadvisor.com/2016/11/14/lexisnexis-shifts-life-insurance-underwriting-into/

https://www.businesswire.com/news/home/20170402005057/en/LexisNexis-Risk-Solutions-Human-API-Partner-Streamline

https://www.hannover-re.com/1049712/new-life-insurance-underwriting-tools-enable-insurers-to-meet-consumer-expectations-resource-2016.pdf

http://blogs.lexisnexis.com/insurance-insights/2017/05/lexisnexis-life-insurance-sbli/

http://blogs.lexisnexis.com/insurance-insights/2018/03/predictive-modeling-satisfies-need-for-speed/

http://blogs.lexisnexis.com/insurance-insights/2018/03/adopt-correlation-based-underwriting-approach/

https://www.cbinsights.com/research/lexisnexis-human-api-partnership/

https://risk.lexisnexis.com/insurance/data-analytics-and-modeling/advanced-analytics-for-underwriting

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About Luke Kinton

In additional to his background in marketing, sales, and web design, Luke brings an impressive range of financial and insurance experience to his role as marketing and communications director at True Blue. A licensed insurance producer in life/health/property/casualty, Luke also has FINRA Registered Series 6 and 63 certifications. As a Six Sigma Green Belt and Certified Market Research Associate, he takes user content to a new level of professionalism.