Loss Cost Quote Report

A filed loss cost is a powerful driver of underwriting and pricing, helping you determine adequate premium. But that same loss cost may seem to limit your options to improve premium and accurately price policies for your insureds. Our Loss Cost Quote Report helps you beat the competition with reliable loss cost, rating, and risk selection information.

And with our Risk Engineering Utility, you can offer a more competitive quote by modeling the effect of improved risk characteristics on the property’s loss cost.

The tutorial below walks through the loss cost data and also highlights some recent formatting updates to the report.

 
 

Verisk’s core commercial property expertise is surveying and evaluating the attributes of commercial properties. We incorporate the latest industry loss experience to develop loss costs tailored to the conditions we find. And we know what to look for when examining a building's construction, hazards, public and private fire protection, occupancy, and other exposures.

The value of loss costs for commercial properties

Verisk uses our Specific Commercial Property Evaluation Schedule (SCOPES) to develop specific loss costs. SCOPES provides many unique features:

  • a nationally recognized method of evaluating potential losses through the interaction of key variables, such as construction, hazards, private and public protection, and occupancy
  • sophisticated analysis of the causes of, and contributors to, potential property losses
  • use of nationally recognized safety standards — such as those of the National Fire Protection Association (NFPA) — and product listings of recognized testing organizations such as UL
  • the latest industry loss experience

With a Verisk Loss Cost Quote Report, you see where SCOPES deficiency points apply, and you can encourage the property or business owner to reduce the hazards. You can improve the bottom line for both you and your insureds by offering pricing incentives for protection features, such as automatic fire detection and fire suppression systems, portable fire extinguishers, standpipe systems, and watchman services. For class-rated properties, our new Class Insight ratio provides a more precise individual risk evaluation to enhance the class-rated loss cost.

Class Insight ratio

For buildings eligible for class rating, the class-determined loss cost is the average of all properties that fall within a range. The Class Insight ratio — using a range of 0.5 to 2.0 — is a more precise evaluation of the class-rated risk. The analytic tool provides important insight as to where the property falls within this range compared with the class average.

class-rated-graph

The chart shows an example where the class-rated loss cost is .133 per $100 of insurance. We calculated that the actual rating of the property — as reflected in the Class Insight ratio of 1.197 — is higher than the average reflected in the class rating. You can see how Class Insight lets you make more refined underwriting decisions based on additional insight.

Risk Engineering Utility

This tool can identify remediable deficiencies in a building that affect the loss cost. Using a proprietary “what if” assessment, you can instantly recalculate loss costs based on correcting the deficiency and present an excellent economic case for doing so to a distributor or insured. You can give them a quote that reflects the improved risk, something the competition can’t do.

Report elements

Your Loss Cost Quote Report includes:

  • Experience Level Adjustment (ELA) factors
  • Limit of Insurance (LOI)
  • Basic Group I (BG I) loss costs
  • Class Insight ratio
  • Basic Group II (BG II) and Enhanced BG II loss costs
  • Protective Safeguard Clause
  • Commercial Statistical Plan (CSP) codes
  • BG I RCP (Rating Plan/BG I Construction Class/Protection) code
  • BG II RCB (Rating Plan/BG II Construction Class/BCEGS®) classification code

For more information about the Loss Cost Quote Report

  • Call Verisk Customer Support at 1-800-888-4476.