The content below appears in the Q1 2015 issue of Visualize, a quarterly magazine from Verisk Insurance Solutions that contains commentary and insights about auto and property underwriting. You’ll also find articles on the future of “smart” homes, a new technology that can help prevent fraud, 2014 catastrophes, and more.
Our community hazard mitigation field analysts conduct on-site surveys of communities around the country to assess fire protection capabilities. We review and analyze survey results and calculate Public Protection Classification (PPC™) grades. We’ve updated and modernized our field survey process — implementing “working smart” principles to increase the frequency of surveys — while maintaining the same staffing levels. Our new methodology will allow us to resurvey the nearly 48,000 communities that we grade every few years.
In the last two years, we’ve had a threefold increase in the number of PPC surveys and a dramatic increase in community-level PPC changes. Those are just two of the accomplishments you should be aware of. As an insurer that uses PPC information, your ability to respond quickly to PPC changes and act on them can directly affect the quality and efficiency of your underwriting and rating.
When you use our Future Effective PPC file, you’ll get alerts three months in advance about those community-level PPC changes. And that helps you when processing renewals as well as at the point of sale. In the past, you may have used the same PPC at renewal as you used when you first underwrote the policy, leading to charging incorrect premiums or adverse selection. Accurate and up-to-date PPC grades can positively affect your bottom line, prevent adverse selection, and help you avoid compliance issues.
Among the many aspects of fire protection we track are fire stations providing automatic aid and community alternative water supplies, such as water-shuttle operations, suction points, or dry hydrants. As more and more communities depend on those capabilities to maintain or improve their PPC, we’d like to share with you the most recent valuable statistics — not available anywhere else.
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