After more than a year of preparation, the revisions to our Public Protection Classifications (PPC®) go into effect on July 1, 2014. We've discussed these changes with our customers and business partners in various communications, relating how we've changed our Split Class 9 and Split Class 8B designations, and added a new water class to reflect the risk of loss in a community more precisely.
We made the changes based on ongoing feedback we'd received from fire departments across the nation and national standards organizations. In our ongoing research and analysis, we identified additional differentiation in fire loss experience within our PPC program. We revised our split classifications to capture enhanced fire protection capabilities that reduce fire loss and fire severity, replacing Class 9 and 8B in the second part of a split classification with X and Y, respectively. For example: a community previously graded 6/9 becomes a 6/6X; a community graded 6/8B is now a 6/6Y. The new designations could result in a reduction in premiums and better risk management.
We've also introduced a new water classification — 10W. This reflects data showing that risks located more than 5 road miles but less than 7 from a responding fire station with a creditable water supply within 1,000 feet had better loss experience than those farther than 7 road miles even with a creditable water supply. Class 10W is property-specific, and the lowered risk could make those properties more attractive as potential business for you to underwrite.
The new classifications will change automatically on July 1.* If you have questions, feel free to contact us at 1-800-888-4476 or email firstname.lastname@example.org.
*New classifications for use in all ISO states except Texas.