ISO Introduces First Scoring Model for Insuring Small-Business Risks

JERSEY CITY, N.J., April 11, 2005 — ISO has introduced ISO ScoreSM Small Business Underwriting, a sophisticated analytical model that can be used to improve loss predictability when underwriting small-business risks.

ISO Score predicts the likelihood of loss for individual risks by assigning a score of 100 to 1,000 — with 1,000 representing the least likelihood of loss. ISO Score is based on relationships revealed by linking insurer policy and loss data with external data, such as weather, crime and business financial information. In addition to generating a score, the model notes the key variables, such as weather, crime or business financial data, that most influenced the score.

"We developed ISO Score in response to numerous insurer requests for a scoring product for small commercial risks, as no industry solution was available," said Kevin B. Thompson, senior vice president – Insurance Services.

ISO Score may be used for underwriting apartments, condominiums, small retail and wholesale outlets, offices and service establishments, fast-food restaurants, limited-cooking restaurants and artisan contractors.

"Insurers recognize that the low average premiums small-business risks generate don't allow for expensive hands-on underwriting," said Thompson. "Fast, accurate scoring can mean the difference between making a profit or not on a small-business portfolio. Insurers can now come to ISO for a solution that will allow their underwriters to make more intelligent underwriting decisions quickly and consistently."

The ISO executive noted ISO Score enables insurers to empower junior underwriters to write risks that achieve a certain scoring level. Risks that require review by more senior underwriters can then be segregated so that the company would maintain a consistent underwriting standard, while realizing the benefits of automation and cost reduction.

ISO Score can be accessed via ISO PassportSM, ISO's easy-to-navigate web-based interface, or through a high-volume batch option to integrate the information into a carrier's automated processing system. It is also available via ISO's Specific Property Information (SPISM) service over the Internet. In addition, ISO can develop a custom application program interface allowing a carrier to link its system directly to ISO's.

For more information on ISO Score, call ISO Customer Service toll-free at 1-800-888-4476, or send an e-mail to

About ISO
ISO is a leading provider of products and services that help measure, manage and reduce risk. ISO provides data, analytics and decision-support solutions to professionals in many fields, including insurance, finance, real estate, health services, government and human resources. Professionals use ISO's databases and services to classify and evaluate a variety of risks and detect potential fraud. In the U.S. and around the world, ISO's services help customers protect people, property and financial assets.

Release: Immediate

Giuseppe Barone / Erica Helton
MWW Group (for ISO)
201-507-9500 /

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