Release: Immediate

Contacts:
Susan Boyle / Jessica Riccardi
MWW Group (for ISO)
201-507-9500
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Mark Strang (COA U.K.)
Tel: 01252 761055
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ISO Launches Benchmarking Service to Address Increasingly Complex Whiplash Claims

• ISO research shows at least 50 percent of whiplash claims are not straightforward "pure whiplash" claims
• New Whiplash Benchmarking Service to address insurers' handling of whiplash claims to highlight training, processing and technology requirements and changes in market behavior

LONDON, Nov. 4, 2003 — Insurance Services Office (ISO) Limited, the U.K.'s leading provider of personal injury claimsand antifraud insurance services and solutions, has launched a benchmarking service for insurancecompaniesto assess their handling of whiplash claims. According to Thatcham, the U.K. Motor Insurance RepairResearch Centre, whiplash claims are costing U.K. insurers £1.6 billion each year.

Datamonitor research also shows that of the 600,000 personal injury claims every year, 80 percentinvolve whiplash. For motor insurers, this percentage can rise as high as 90 percent. ISO's extensiveanalysis and research show whiplash claims are becoming more complicated and at least 50 percentof those claims are no longer "pure whiplash" claims.

ISO's new Whiplash Benchmarking Service applies the powerful business intelligence capabilitiesof the ISO Claims Outcome AdvisorTM (COATM)solution and enables insurers to see how their whiplash claims compare with industry benchmarks andimpact their profitability.Insurerscan use ISO's new service to assess the training, processes and technical requirements for claimshandlers, and spot trends to deal with claims more effectively. This, in turn, enables claims tobe settled consistently and quickly, benefiting both insurers and claimants.

"Industrywide, insurers have been subject to a proliferation of whiplash claims. This has resultedin attempts by insurers to bring consistency to the payments they make to claimants, which in turnhas seen the scope of claimants' injuries and complications increase," said Mark Strang, accountexecutive, ISO. "Consequently, there is no longer such a thing as a simple 'pure whiplash' book ofclaims as medical reports increasingly include contusions, fibromyalgia, aggravation of preexistingconditions, accelerated onset of symptoms and other medical conditions. These increasingly complexwhiplash claims can no longer be managed by a 'one settlement fits all' approach. Insurers need toassess their handling of whiplash claims and the cost to their business."

Making the right offer first time
"Many insurers use predetermined payout scales or software that generates a general damages amountto assess whiplash claims. Insurers using simple methods may not be achieving expected reductionsin overpayments because fewer claims will neatly fit into the predefined scales or software categories.Our customers have found that a better understanding of the injury enables them to make a more accurateclaim offer. Offers that are too low are more likely to go to court and end up with higher legalfees. Offers that are too high represent pure leakage. Getting the claim settled as quickly and consistentlyas possible is in everyone's interest. Arming insurers with more information can only help this process," MarkStrang continued.

"Our COA customers are already able to do this by using the solution to spot trends in personal injury claims management. We're now offering the power of COA and the Whiplash Benchmarking Service to insurance companies for the first time, so they can assess the impact of whiplash claims on their business. By auditing claims and their settlements, insurers are able to assess the likely effect on their business and spot trends going forward.

"More and more companies are taking up the offer of a closed claim study. From a detailed analysisof a representative sample of settled claims, COA can graphically display the current level of consistencywithin their organizations. The benchmarking service also helps insurers to position themselves inthe marketplace. This is often an eye-opening exercise for insurance companies, providingan insightinto the performance of their claims-management practices," added Mark Strang.

About Claims Outcome AdvisorTM (COATM)
ISO Claims Outcome AdvisorTM (COATM)is the industry's first personal injury claims management solution that manages the multiple dimensionsof insurance companies' personalinjury claims portfolios. Using internationally recognized ICD medical codes, COA understands theseverity and recovery implications of over 20,000 medical conditions, including injuries, treatments,complications and preexisting conditions, and 14,000 occupations. COA helps claims handlers, managersand actuaries manage the unique and complex medical, legal and occupational issues presented bypersonal injury claims, and helps ensure appropriate financial arrangements are agreed and implemented.Claims handlers can manage all aspects of a case from first notice of loss to return-to-work plans,rehabilitation and damages.

About ISO
ISO is a leading source of information, products and services related to property and liability risk. For a broad spectrum of commercial and personal lines of insurance, ISO provides data, analytical and decision-support products; consulting; data processing; and technical, statistical and actuarial services. ISO field services include on-site rating and underwriting services and the evaluation of community loss-mitigation efforts. ISO's products help customers with sales and prospecting, underwriting, rating and quoting, customer management, policy administration, product development, claims administration and fraud detection. ISO's AIR Worldwide subsidiary provides technologies to assess and manage natural and man-made extreme-event risk. Through its ISO Claims Services, Inc. (iiX unit) and Intellicorp subsidiaries, ISO provides motor vehicle reports and criminal-records information and through its AscendantOne unit delivers rating, quoting and policy-administration solutions. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, insurance regulators and other government agencies.