JERSEY CITY, N.J., August 1, 2001 — Insurers considering expanding into new lines or territories can more easily assess potential profitability before committing to the new business.
Insurance Services Office, Inc. (ISO) has enhanced its ISO Market ProfilerTM insurance market-research product in three critical ways:
ISO Market Profiler now includes industry-specific annual loss-ratio information, allowing insurance marketers to more easily identify and assess promising new market segments for their book of business.
The insurance and business data available on ISO Market Profiler permits marketers to segment markets by lines of business, by Standard Industry Classification (SIC), geography and business size. The enhanced ISO Market Profiler incorporates a unique feature that enables users to access information by market segment across lines of business.
The annual loss ratios are available by industry for three lines of commercial insurance — general liability, commercial property and workers compensation. The annual loss ratios are based on available industry accident-year experience for general liability and commercial property lines, and policy-year experience for the workers compensation line.
In addition to the annual loss-ratio information, ISO Market Profiler provides insurance marketers a formula loss ratio to better assess profitability for the general liability, commercial property and workers compensation lines.
The proprietary formula loss ratio provides users an "average" loss ratio that more closely reflects the industry's loss potential by minimizing the effect of randomness and possible distortions of annual loss ratios. ISO's formula loss ratio is based on sophisticated actuarial methodology that applies credibility weighting to multiple years of loss information.
"We've made ISO Market Profiler a more robust product with new features and functions because our customers told us what they wanted," said James Surrago, ISO's vice president of data management and information services.
"The enhanced ISO Market Profiler provides improved line-specific loss-ratio information, a significant improvement that allows customers to make more informed marketing decisions in underwriting more profitable business," Surrago added.
For more information on ISO Market Profiler, contact ISO Customer Service at 1-800-888-4476, or e-mail ISO at email@example.com.
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 statistical, actuarial, underwriting and claims information and analyses; consulting and technical services; policy language; information about specific locations; fraud-identification tools; and data processing. In the United States and around the world, ISO serves insurers, reinsurers, agents, brokers, self-insureds, risk managers, and insurance regulators and other government agencies.