CARFAX, in collaboration with Pinnacle Actuarial Resources, has introduced the CARFAX Vehicle Build Score to “modernise” the traditional approach to vehicle symbol ratings.
The solution employs the full 17-digit vehicle identification number (VIN) and aims to enable insurers to refine their rating systems by providing an understanding of a vehicle’s value and specific attributes.
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It is built on a proprietary vehicle valuation model that aims to prevent both overpricing and under-pricing by offering current market values.
This model is a result of CARFAX’s modelling techniques, which assess a vehicle’s loss experience at the component level.
This detailed approach negates the need for yearly updates and adjustments that are required for existing symbols, the company said.
Designed to serve personal and commercial auto insurance markets, the solution is said to provide “unmatched details at the VIN level”.
The score can be integrated into the rating model and is being submitted for approval to state regulators across the US.
According to CARFAX insurance analytics director Don Hendriks, it uses the company database of more than 36 billion records to provide insights.
Hendriks added: “The existing practice of utilising symbols does not reflect an understanding of a specific vehicle’s bumper to bumper configuration. The CARFAX Vehicle Build Score leverages CARFAX’s database of more than 36 billion records to provide insights into a specific vehicle’s factory and post-factory installed features, helping insurers better understand risk and price policies appropriately.“
Pinnacle managing principal Roosevelt Mosley said: “For insurers, the Vehicle Build Score is an evolution towards a more advanced and refined approach to symbols and the rating process. Our partnership with CARFAX allows us to translate detailed vehicle data into actionable risk assessments via a simple score, giving insurers a critical edge in underwriting and pricing.”
CARFAX, part of S&P Global Mobility, has been aiding consumers and the automotive industry since 1984 with solutions powered by CARFAX vehicle history data.
