ISO Risk Analyzer Personal Auto Environmental Module V2

Refine your rating by taking a good look at how geographic variables affect your risks

Traffic volume. Commuting patterns. Terrain. Precipitation. Temperatures. Extreme weather. Speed limits. Elevation. Population.

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What influence do geographic variables such as those have on a vehicle’s loss potential? What’s the overall effect on your book of personal auto business? What pricing refinements can you make?

Our new version of the ISO Risk Analyzer® Personal Auto Environmental Module can answer those questions with more accuracy than ever.

Renewed, refreshed, refined

Since we first introduced the environmental module, we’ve made a number of changes to incorporate updated and enhanced data sources, as well as refinements to our modeling methodology to improve the quality of results.

For example, the module now takes into account variables such as average daily traffic volume, elevation variation, road classifications, and extreme weather information from a more refined storm database. It also uses the most current U.S. Census information and refined ISO territory experience at the ZIP code level.

How it works

Using predictive modeling to examine environmental indicators that can affect personal auto risks, the environmental module can predict expected losses for your risks at the policy level by major coverage. For each risk’s garaging location, the environmental module analyzes the interactive effects of hundreds of variables and provides output for the following components:

  • traffic generators — includes characteristics such as transportation hubs, shopping centers, businesses, hospitals/medical centers, and entertainment districts
  • traffic density and driving patterns — includes characteristics such as commuting patterns, public transportation usage, speed limits, average daily traffic loads, and functional road classifications
  • traffic composition — includes characteristics such as number of vehicles per household, average age of vehicle operators, and typical vehicle uses
  • weather and terrain — includes measures of snowfall, rainfall, and temperature; extreme weather event data; and elevation changes
  • experience and trend — includes granular loss experience and state frequency and severity trends from ISO lost cost analyses

In addition to the components, you’ll receive the loss cost for a specific location with underlying frequency and severity statistics.

How insurers are using the output

Insurers have been using output from the environmental module in a variety of ways, such as developing territory definitions, evaluating territory pricing, establishing rate factors, and assessing risks as part of the underwriting process. They’re also using the product in their own predictive modeling efforts, including projects that involve consultants.

A macro view of the market

A model built using only a single insurer’s data may have too narrow a view of cost differences in the broader marketplace. ISO Risk Analyzer provides a macro view of the market and is designed for use by any insurer for its specific book of business.

Access to many sources The environmental module for personal auto has access to many industry and third-party data sources, including:

  • statistical data and ratemaking information representing more than a third of the personal auto market
  • environmental and weather-related risk information from AIR Worldwide
  • third-party information, such as traffic data and information on business locations

Flexible input and delivery options

  • downloadable Excel® files
  • batch-order processing
  • LOCATION®

ISO Advanced Rating Toolkit — Personal Auto

Available to participating ISO customers

The ISO Risk Analyzer Personal Auto environmental module is also available as part of the ISO Advanced Rating Toolkit— Personal Auto — a comprehensive bundled offering of ISO’s sophisticated pricing refinement tools. Powered by the predictive analytic capabilities of ISO Risk Analyzer, the complementary collection of rating tools within the ISO Advanced Rating Toolkit enables you to derive even more value from ISO’s personal auto products and take your pricing refinement efforts to new levels.

For more information . . .

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