ISO Risk Analyzer Businessowners Environmental and Rating Factors Modules

Using powerful predictive analytics, ISO Risk Analyzer Businessowners can help you more accurately select and price your small business risks by providing you with a highly detailed look at how major perils affect the loss potential of those risks.

ISO Risk Analyzer Businessowners currently offers an environmental module and a by-peril rating factors module. You can use the complementary modules to help:

  • jump start development of your by-peril rating plan
  • improve your current rating structure for territory refinement
  • enhance your own predictive modeling efforts
  • profitably grow your share of the market
  • improve your loss ratio

Environmental Module

The environmental module uses predictive modeling based on location-specific data to examine multiple variables related to a risk's loss propensity to predict the non-hurricane portion of expected loss costs by peril group.

To determine expected losses, the environmental module pinpoints a risk's loss propensity by major peril group based on the geographic attributes of the area surrounding the risk’s location. The model then analyzes the interactive effects of multiple variables that contribute to the exposure of the risk, determining which variables matter, how much they matter, and how the interaction of variables affects the overall risk.

By-Peril Rating Factors Module

The by-peril rating factors module makes available rating relativities by individual peril for several important businessowners rating factors:

  • construction type
  • protection
  • sprinklered/nonsprinklered status
  • class group
  • amount of insurance

The combination of the two modules offers increased flexibility for insurers that want to look at the effects of perils individually and perform their own by-peril analysis.

By examining how specific environmental variables and rating factors can affect each individual peril group’s contribution to the total loss cost, ISO Risk Analyzer Businessowners provides you with a more precise way to analyze your loss exposure and identify the key drivers of loss costs. For each risk, you get an evaluation based on the most relevant and predictive insurance risk elements for that particular location.

Addresses data quality and credibility issues

ISO Risk Analyzer Businessowners draws on many data sources including ISO statistical plan data and rating information, hazard information, and third-party information such as census, weather, and business-location data.

ISO will provide regular updates to the models to account for changes in the underlying data and ISO loss costs, saving you the time, effort, and resources required for collecting, cleansing, and refitting variables into your models. This comprehensive approach provides a more robust, stable model that requires minimal retuning to accommodate changing objectives and requirements.

For more information...

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