JERSEY CITY, N.J., January 8, 2008 — With the launch of the environmental module of ISO Risk Analyzer® Personal Auto, ISO expands its offering of analytic decision-support tools in the personal auto insurance line.
ISO Risk Analyzer Personal Auto is a predictive model that helps insurers classify, segment, and price personal auto risks. The powerful analytic tool examines more than 1,200 indicators and predicts expected losses at the policy level by major coverage.
The environmental module of the model examines the interactive effects of the traffic environment, including the number and types of businesses in an area, traffic density, driving patterns, and public transportation usage; the natural environment, such as the weather and topographical characteristics of an area; and other factors, such as claim frequency and severity trends by state.
The environmental module is one of several ISO Risk Analyzer Personal Auto modules that insurers will be able to use individually or together, depending on their analytic objectives. At this time, 17 insurers are participating in pilot tests to evaluate the environmental module. The other modules under development include the vehicle and driver-history modules.
To support the new personal auto model, ISO has begun the regulatory filing process for an optional personal auto rating plan and expects over the coming months to complete the process several states at a time.
“ISO is committed to producing and supporting sophisticated analytic solutions that meet insurers’ current and future needs,” said ISO Chairman, President, and Chief Executive Officer Frank Coyne. “Currently, our ISO Innovative Analytics division is working on several innovative initiatives — including the development of predictive modeling analytics for homeowners and workers compensation lines of insurance — with more in the pipeline.”
“No other predictive model has access to the amount and type of data that ISO Risk Analyzer Personal Auto has,” said Marty Ellingsworth, president of ISO Innovative Analytics. “And no other model comes close to analyzing the interactive effects of as many indicators.
“We welcome insurers to join us in the bold new world of predictive analytics,” added Ellingsworth. “By using ISO Risk Analyzer Personal Auto, they will be at the forefront of a whole new way of using analytics to evaluate their risk; target their marketing, underwriting, and pricing efforts; and discover new opportunities to improve their competitive differentiation in the marketplace.”
Insurers can integrate the environmental module and future modules into their own predictive models or use ISO Risk Analyzer Personal Auto as a stand-alone model. To send and receive reports, insurers can choose web delivery, secure FTP, interactive mainframe delivery, or batch order processing.
About ISO Innovative Analytics (IIA)
IIA, an ISO division, is devoted to developing innovative analytic decision-support tools based on predictive modeling. Drawing on ISO’s vast resources and expertise in actuarial science, data management and integration, statistical modeling, and information technology, IIA delivers leading-edge analytic tools that reflect ISO’s broad experience and deep understanding of risk. Initial product offerings include ISO Risk Analyzer® Personal Auto and ISO PreScreen™ Personal Auto, an insurance-risk prospecting tool that helps insurers identify prospects more closely aligned with their business strategies. For more information, visit www.verisk.com.
A leading source of information about risk, ISO provides data, analytics, and decision-support services to professionals in many fields, including insurance, finance, real estate, health services, government, human resources, and risk management. Using advanced technologies to collect, analyze, develop, and deliver information, ISO helps customers evaluate and manage risk. The company draws on vast expertise in actuarial science, insurance coverages, fire protection, fraud prevention, catastrophe and weather risk, predictive modeling, data management, economic forecasting, social and technological trends, and many other fields. To meet the needs of diverse clients, ISO employs an experienced staff of business and technical specialists, analysts, and certified professionals. In the United States and around the world, ISO helps customers protect people, property, and financial assets.