Experian launches no claims discount database

Information services company Experian today announced the launch of the no claims discount (NCD) database, a centralised, online store of records associated with any individual’s ‘no claims’ history.

For the first time in the UK, the insurance industry will be able to quickly and easily validate the no claims history declared by individuals during the quotation, underwriting and claims processes.

Brokers and insurers can use the NCD database to replace the manual process they use to collect data, minimising risk and providing a better service for customers.

Experian says the new system will ensure the correct risk assessment is completed on individuals and the right rate can be assigned, increasing customer confidence in the accuracy of data used. It will eliminate the need for customers to submit written proof of their no claims history, reducing policy delays and improving their overall application experience.

Experian Insurance Services general manager Jo Buxton said: “Working closely with the industry, we believe that at present only a small proportion of no claims discounts are actually verified instantly, leaving room for error and fraud. Furthermore, the verification process can take a number of days.

“The availability of our NCD database will help the insurance industry protect against losses after the policy has been written, but will also help safeguard the interests of consumers.”

In addition to insurers, Experian’s NCD will be available to delegated third parties, such as brokers, intermediaries and claims handling companies (subject to approval of NCD members).

Experian is also implementing plans to combine data from its exclusive consumer pinning technology, ExPin, with its NCD database to enable improved data management and identity verification to ensure that an insurer maintains an accurate and complete understanding of a customer’s behaviour.

The company already hosts industry databases such as the Claims Underwriting Exchange.