| By Tom Clarke, Director of Motor Strategy, LexisNexis Risk Solutions However, UK motor insurance providers are being asked to price vehicles they have never insured, repaired or settled claims on, with limited visibility of how construction quality, safety systems and component availability will impact repair costs. Underprice and loss ratios may deteriorate as claims experience emerges. Overprice and insurance providers risk ceding a fast-growing segment to competitors willing to take a different view of the risk. At the same time, ADAS (advanced driver assistance systems) specifications vary significantly across models and trim levels. Insights from the recent China Auto Show underline how rapidly Chinese manufacturers are introducing new models into global markets, with specifications that shift from one vehicle to the next and are frequently unverified at the point of quote. Pricing problems This lack of visibility has real consequences. Premiums for some Chinese EV models are running at close to triple those of equivalent European vehicles[iv], reflecting the uncertainty insurance providers face when they cannot accurately assess risk. This is against a backdrop of motor claims severity inflation at 7% in 2026[v] partly driven by the growing complexity of repairing vehicles with advanced electronics and EV powertrains. Of the 36.7m cars on the road, c.12% are now hybrid or fully electric where costs to repair are significantly higher.[vi] Chinese EVs compound the claims conundrum further as parts for repairs can be difficult to source meaning higher average claim costs and greater pricing uncertainty. Addressing the data gap Two developments are beginning to address the data gap from different directions. VIN-level vehicle intelligence through LexisNexis® Vehicle Build gives insurance providers insight into exactly how a specific vehicle is equipped — including the presence, specification and performance of specifications. Where fitment varies significantly across models, that level of specificity matters.