ISO Risk Quality Index

ISO Risk Quality Index is an insurance-risk prospecting tool — available for both homeowners and personal auto — that uses predictive analytics to help you achieve your marketing objectives. Now you can identify potential customers based on a wide variety of characteristics related to risk. And you can more closely align your marketing efforts with your risk tolerance and overall strategy.

The ISO Risk Quality Index Advantage
For each of their rating territories, insurers establish a base rate reflecting the average expected loss cost in the territory. But there's actually a distribution of risk and expected loss costs – even within a small geographic area. The ISO Risk Quality Index more closely follows the actual distribution of risks, so you can identify the full range of risks in currently defined territories and better match premium and exposure.

Here's how it works

ISO Risk Quality Index will evaluate your own prospect lists — or third-party lists — and provide an indication of the relative insurance risk of a potential customer. ISO Risk Quality Index uses various components of the ISO Risk Analyzer® predictive model, which examines hundreds of insurance-risk indicators, pinpoints characteristics down to small details of geography, and predicts expected losses at the policy level. The model looks at the effect of individual components (such as those listed below) on frequency and severity.

For personal auto:

  • traffic density
  • traffic composition
  • driving patterns
  • traffic generators
  • topography
  • weather

For homeowners:

  • weather conditions
  • businesses
  • fire exposure
  • wind exposure
  • major bodies of water
  • elevation

You can use ISO Risk Quality Index on its own to target prospects. Or you can use the index together with marketing techniques that incorporate indicators such as credit-based scores. You can also use ISO Risk Quality Index to complement other marketing analytics, such as models designed to identify prospects most likely to purchase.

For more information . . .

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