ISO Risk Analyzer® Personal Auto Vehicle Module for Physical Damage

ISO Risk Analyzer® Personal Auto Vehicle Module for Physical Damage is a powerful analytic tool that uses vehicle characteristics to predict collision and comprehensive losses at a highly refined level. As part of the ISO Risk Analyzer suite of predictive modeling tools, the vehicle module for physical damage represents a significant evolution in the refinement and accuracy of vehicle symbols and vehicle rating.

The vehicle module for physical damage offers two products — ISO Risk Analyzer Personal Auto Symbols and more detailed component-level output.

ISO Risk Analyzer® Personal Auto Symbols
The ISO Risk Analyzer Personal Auto Symbols product provides nearly 400 uniquely defined symbols and corresponding rating relativities for comprehensive and collision coverage.  These new symbols are two-characters in length, composed of a 'price new' character and a 'vehicle attribute' character. ISO derives the ISO Risk Analyzer Personal Auto Symbols using individual vehicle attributes, such as body style, and performance and safety features, as well as information related to the manufacturer's suggested retail price (MSRP).  The new symbols represent the combined predictive power of hundreds of vehicle characteristics distilled into a compact symbol representation.

The ISO Risk Analyzer Personal Auto Symbols are significantly more granular and accurate than ISO's current Symbols produced using the Vehicle Series Rating (VSR) Program. The new ISO Risk Analyzer Personal Auto Symbols bring the power of predictive analytics to physical damage rating and allow you to easily enhance your vehicle rate-segmentation capability. 

ISO Risk Analyzer® Personal Auto Vehicle Module Output
The ISO Risk Analyzer Personal Auto Vehicle Module is made up of relativities and components with separate frequency and severity models built by coverage for collision and comprehensive, respectively. Comprehensive coverage is also modeled by peril.

For each coverage, the set of relativities include:

  • price new relativity
  • model year relativity
  • ISO Risk Analyzer Personal Auto Symbol relativity

The components are groupings of input variables constructed from VIN information and a number of third-party sources, and represent specific vehicle attributes. The components can be thought of as "super variables" you can use directly as inputs in your predictive modeling efforts.

The comprehensive components include:

  • theft (including vandalism and fire)
  • weather (wind and water, excluding catastrophic losses)
  • animal
  • glass
  • all other perils

The collision components include:

  • body style and dimensions (such as curb weight, bumper height, size dimensions, and body style)
  • performance and safety features (such as airbags, engine displacement, and horsepower)

You can use the output of the vehicle module as standalone analytics to help classify, segment, and price your vehicle physical damage risks with confidence. Or you can use the components as input to jump-start your own customized model, taking advantage of ISO's extensive data acquisition, preparation, and variable selection work that is necessary to build a reliable model.

Data Sources
ISO built the ISO Risk Analyzer Personal Auto Vehicle Module for Physical Damage using data from ISO's Statistical Plan and information obtainable from the VIN of each vehicle. This information was supplemented by data from extensive third-party sources that include vehicle characteristics such as:

  • physical characteristics — weight, dimensions, center of gravity, body style, and bumper height
  • performance — engine size, horsepower, acceleration, and braking times
  • safety and crash test ratings
  • features — anti-lock brakes, daytime running lights
  • other — price new and coverage specific data, such as theft rate applied to comprehensive theft peril models

ISO filing
ISO has filed a countrywide filing for ISO Risk Analyzer Personal Auto Symbols that will enable companies to easily adopt the ISO Risk Analyzer Personal Auto Vehicle Module for Physical Damage to refine their current vehicle rating program.

Delivery

  • Available through VINMASTER®

ISO Advanced Rating Toolkit™ — Personal Auto
Available to participating ISO customers
The ISO Risk Analyzer Personal Auto vehicle module for physical damage is also available as part of the ISO Advanced Rating Toolkit for 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.