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Cloud-based delivery boosts speed and accuracy of ISO rating content

Leveraging reliable and current data while also satisfying customer expectations for speed are two goals that can sometimes be at odds for insurers. Although it is generally well known that the time required to issue a quote and subsequently bind a policy can directly impact an insurer’s premium volume, the story does not always end there. Delaying the implementation of updated rating factors and rules can also directly impact the amount of premium and profit. For instance, a 3 percent rate increase on a $100 million renewal book of business could mean losing $250,000 a month—or $3 million a year.

Verisk has the unique ability to help insurers mitigate risk, collect premiums appropriate to their exposure, and maintain compliance by simplifying their workflow.

Similarly, insurers often need to upload policy documents and rating algorithms to keep up with frequently changing regulations across product lines, states, and coverages. Verisk releases more than 75 circulars each week to help insurers keep up with shifting loss costs, rules, and coverage updates.

Whether insurers have their own rating engines or receive rating services from vendor partners, they frequently face the same challenges—speed and accuracy. Timely implementation of rating content changes can be complex and resource-intensive.

Where Verisk can make a difference

Verisk recognizes and understands the issues when it comes to the delivery and use of rating content. In response, Verisk has dramatically expanded the available consumption models for ISO rating content. At the forefront of three new consumption models is “Rating as a Service” or RaaS. This cloud-based engine gives insurers the ability to make a rating call and receive results without installing or maintaining ISO rating content.

Insurers also have the choice of Human-Readable Content (HRC) in HTML files for easy viewing and navigating as well as automated Machine-Readable Content (MRC) for delivery in XML files.

Giving insurers choices in how to implement ISO rating content has several key benefits:

  • Eliminates the need to translate ISO rating algorithm changes: Accuracy is enhanced, and delivery time is shortened.
  • Reduces implementation requirements: A cloud-based rating service does not require heavy software implementation. The rating software resides in the cloud, ready to be accessed with a user interface supported by a smart API.
  • Eases compliance issues: Insurers can minimize the risk of inaccurate implementation of rating rules and algorithms that can differ from state to state by allowing Verisk—the people who created the ISO rating engine—to help do the heavy lifting.
  • Provides current rating data: Insurers can receive up-to-date access to the latest ISO rule changes to help avoid premium leakage.

Verisk has the unique ability to help insurers mitigate risk, collect premiums appropriate to their exposure, and maintain compliance by simplifying their workflow with ISO Electronic Rating ContentTM (ERCTM), now available in more easy-to-use options than ever.

Learn more about ISO Electronic Rating Content.

Mark Sheehan

Mark Sheehan is vice president, Rating Solutions at Verisk. You can contact Mark at

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