Do All Insurance Companies Use LexisNexis?

When applying for insurance, you may notice the process involves disclosing a significant amount of personal information. This raises the question – what exactly happens to this data after it’s collected? Specifically, do insurance companies share it with data mining companies like LexisNexis?

The short answer is – not necessarily. While LexisNexis works with many major insurers, not every company relies on their services and data analytics. The decision to use LexisNexis is made independently by each insurance provider based on their specific underwriting approach.

Below we’ll explore how LexisNexis supports the insurance industry, what data they access, which companies use them, and how to choose carriers that best align with your privacy preferences.

What is LexisNexis and How Do They Support Insurers?

LexisNexis Risk Solutions provides a range of data tools and analytics that assist insurers with tasks like:

• Evaluating and pricing risk when underwriting new policies
• Verifying identities and preventing fraud
• Streamlining processes and improving operational efficiency
• Managing claims and detecting suspicious activity
• Assessing risk factors at the time of renewal

They offer both data services and customized scoring models that insurers can integrate into their decision-making process at various points.

What Types of Data Does LexisNexis Collect?

LexisNexis gathers extensive data from public records, commercial sources, and their contributing insurance partners. Information they compile can include:

• Identifying details like name, address, DOB, SSN
• Driving history and motor vehicle records
• Credit and financial information
• Police reports and criminal records
• Past insurance claims
• Property records
• Maps and geospatial data
• Demographic data

They use this to build comprehensive profiles on individuals which insurers can access through their various tools and services.

Which Insurance Companies Use LexisNexis?

Given the prevalence of their products in the insurance industry, many top insurers likely use LexisNexis services to some degree. Some known major customers include:

• AIG
• Allstate
• Esurance
• Farmers Insurance
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Travelers

However, not every insurance company necessarily relies on LexisNexis. Next we’ll look at finding carriers that don’t use their services.

How to Find Insurance Companies That Don’t Use LexisNexis

If you are uncomfortable having your personal data shared with and analyzed by LexisNexis, you do have options:

Consider smaller regional and independent insurers – Major national companies are more likely to use LexisNexis widespread. Smaller insurers may take a more customized approach.

Ask agents/brokers for recommendations – Independent agents represent multiple companies and can suggest carriers that don’t use LexisNexis.

Contact companies directly – Don’t be afraid to call customer service and simply ask if they utilize LexisNexis services.

Consult review sites – Check online reviews and forums as some may indicate if a company uses alternative data sources.

Compare quoting processes – LexisNexis-reliant insurers may have longer applications requiring more personal data disclosure.

While most insurers likely use some amount of third-party data, those that avoid comprehensive services like LexisNexis tend to take a more focused approach to underwriting.

What Are the Potential Drawbacks of Avoiding LexisNexis?

While your privacy concerns may make you want to steer clear of LexisNexis-using insurers, understand that could impact your insurance experience:

• Application process – May require answering fewer questions and providing less documentation upfront.

• Premium costs – Carriers have less data with which to accurately price policies. Could result in slightly higher rates.

• Approval likelihood – Insurers have less information to evaluate your risk profile. May face more frequent rejection.

• Fraud prevention – Companies lose LexisNexis’s extensive fraud-detecting capabilities.

• Convenience – Smaller insurers may lack robust online servicing capabilities larger players offer.

Finding the right balance between privacy and insurance access/affordability comes down to personal preference. But utilizing alternative data certainly has trade-offs.

Tips for Protecting Your Privacy

If you do opt to apply with insurers that use LexisNexis services, there are still steps you can take to safeguard personal data:

• Research company policies – Review providers’ privacy commitments and data usage disclosures.

• Limit disclosures – Only provide requested information on applications rather than volunteering extra data.

• Opt out when possible – Some insurers may allow opting out of certain data collection.

• Be selective – Avoid applying with multiple LexisNexis-using insurers to limit data sharing.

• Monitor reports – Check services like MyLexisNexis for accuracy of collected information.

• Add security freezes – Placing freezes on credit reports avoids access without your consent.

• Submit complaints – File complaints with regulators if you feel data practices are unlawful.

While LexisNexis provides key services to the insurance industry, it ultimately comes down to your comfort level. Taking time to understand different companies’ approaches, being selective in applications, and taking control of your personal information can help strike the right balance.

Frequently Asked Questions

Below are answers to some common questions about insurance companies’ use of LexisNexis services:

Do national insurance companies like Geico and State Farm use LexisNexis?

Many large, national insurance brands do utilize LexisNexis services to some extent based on the prevalence of their products in the industry. However, specific usage can vary so it’s best to inquire with each company.

Do independent insurance brokers have access to LexisNexis?

Yes, independent brokers can purchase services and data from LexisNexis to assist in evaluating quotes from different insurance carriers. But not all independent brokers necessarily use LexisNexis.

Is avoiding LexisNexis a sign of a weak or unstable insurance company?

No, the decision to use or not use LexisNexis services is independent of a company’s financial stability. It’s important to verify they have strong financial ratings from agencies like A.M. Best.

Is LexisNexis used more for auto versus home or life insurance?

LexisNexis tends to be most commonly used with property/casualty insurance lines that involve greater risk assessment, such as auto and home. But they offer services across all insurance verticals.

Can I request to opt out of sharing data with LexisNexis?

You can contact insurers to ask about opt out policies. But they may be limited in ability to underwrite policies without leveraging external data/analytics from companies like LexisNexis.

Is it risky to use smaller insurers that avoid LexisNexis-type services?

There are trade-offs but smaller insurers can still offer competitive rates/service while taking a more privacy-focused approach. The key is researching companies thoroughly before purchasing a policy.

Do insurance agents have to disclose if they use LexisNexis services?

Agents may be required to disclose data sources to consumers per regulations. But you can always directly ask agents about their use of LexisNexis or other third-party data services.

Can I request a copy of the data LexisNexis has collected on me?

Yes, you can contact LexisNexis to request a copy of your information. This allows you to review your data for accuracy and completeness.

Finding insurers that strike the right balance for your specific privacy preferences may require some diligence. But options exist in the marketplace for avoiding dependence on comprehensive data services like LexisNexis if you have concerns.