ISO Risk Analyzer Homeowners is a suite of predictive models that help insurers classify and segment risks. We offer the product in several modules. The first — the environmental module — produces expected loss costs for individual risks based on the environmental variables used in the model. In addition to loss costs for all perils, the model provides loss costs by peril.
We’ve also developed and begun filing an optional alternative homeowners rating rule based on the environmental module. As of December, we’ve filed the rule in 30 states, and we’ve implemented it in 23 states.
The second module — the rating factors module — integrates the predictive analytic features of the environmental module with by-peril rating relativities for policy deductible, amount of insurance, and age of construction. Filings of an optional alternative rating rule that incorporates the environmental and rating factors modules will start early next year.
A third module will predict expected losses by peril based on an analysis of building characteristics, such as number of bathrooms and square footage.
We’ll release more information about ISO Risk Analyzer Homeowners in early 2012.