ISO Risk Analyzer Homeowners | Environmental and Rating Factors Module

Environmental Module

The environmental module of ISO Risk Analyzer Homeowners determines expected losses by major peril, including wind, fire, lightning, liability, theft and vandalism, hail, weather-related water, and nonweather-related water. For all other perils, the predictive modeling tool combines them as a single peril. For each peril, the environmental module looks at the effect of individual components on frequency and severity. Component examples include weather and physical environment.

To determine expected losses by peril, the predictive model pinpoints a risk's characteristics based on the attributes of the home and street address. (Most other models can drill down only to the ZIP-code or ZIP-cluster level.) The model then analyzes the interactive effects of hundreds of possible variables that contribute to the exposure of the risk. For each risk, you get an evaluation based on the most relevant and predictive insurance risk factors for that specific address.

By-Peril Rating Factors Module

The by-peril rating factors module makes available rating relativities by individual peril for several important homeowners rating factors — Coverage A amount of insurance, deductible, and age of construction.

The combination of the two modules offers increase flexibility for insurers that want to look at the effects of perils individually and perform their own by-peril analysis. Insurers can use the output of ISO Risk Analyzer Homeowners as stand-alone analytics to help classify, segment, and price their homeowners risks with confidence. Or they can use the model's detailed output for each peril and major component of risk, such as weather, to enhance their current analytic solution to better meet their objectives.

To produce predictions of expected losses for homeowners risks, ISO Risk Analyzer Homeowners accesses many industry and third-party data sources, including:

  • statistical data and loss cost information representing 40 percent of the homeowners market
  • property and hazard information from LOCATION®, including information on distance to bodies of water
  • third-party information, such as census, weather, and business location data

For more information . . .

. . . on the ISO Risk Analyzer suite of predictive modeling solutions, send e-mail to