Traffic volume. Commuting patterns. Terrain. Precipitation. Temperatures. Extreme weather. Speed limits. Elevation. Population.
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.
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.
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:
In addition to the components, you’ll receive the loss cost for a specific location with underlying frequency and severity statistics.
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 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:
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.
. . . on the ISO Risk Analyzer suite of predictive modeling solutions, send e-mail to email@example.com.